Exercise 10-19

The Ferrell 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. Determine the missing pieces of information below.

		Planes			Taxis			Limos
Service revenue		$			$504,700			$
Variable costs		5,502,300						296,900
Contribution margin					255,000			485,420
Controllable fixed costs		1,504,900
Controllable margin					76,000			244,320
Average operating assets		25,002,400						1,527,000
Return on investment		12	%		8	%			%