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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
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 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. Determine the missing pieces of information below. Planes Taxis Limos Service revenue $500,300 $ Variable costs 5,506,900 302,100 Contribution margin 251,700 454,998 Controllable fixed costs 1,496,400 Controllable margin 77,000 214,998 Average operating assets 25,002,900 1,535,700 Return on investment 13 % 10 % % Click if you would like to Show Work for this question: Open Show Work
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