Question
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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