The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment
Question:
The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers’ bonuses are based in part on the results shown in these reports.
Recently, the company was the victim of a computer virus that deleted portions of the company’s accounting records. This was discovered when the current period’s responsibility reports were being prepared. The printout of the actual operating results appeared as follows.
Planes Taxis Limos Service revenue $ ? $500,000 $ ?
Variable costs 5,500,000 ? 300,000 Contribution margin ? 250,000 480,000 Controllable fi xed costs 1,500,000 ? ?
Controllable margin ? 80,000 240,000 Average operating assets 25,000,000 ? 1,500,000 Return on investment 13% 10% ?
Instructions Determine the missing pieces of information above.
AppendixLO1
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso