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E10-19 The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance

E10-19 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 companys accounting records. This was discovered when the current periods 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 fixed 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. You can find answer at Sobtell.com

https://www.sobtell.com/q/tutorial/default/19331-the-pletcher-transportation-company

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