Question
The Blossom Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is
The Blossom 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, with question marks for missing amounts, appeared as follows. Determine the missing pieces of information below. Planes Taxis Limos Service revenue $enter a dollar amount $495,000 $enter a dollar amount Variable costs 5,490,000 enter a dollar amount 295,000 Contribution margin enter a dollar amount 245,000 423,500 Controllable fixed costs 1,495,000 enter a dollar amount enter a dollar amount Controllable margin enter a dollar amount 75,000 188,500 Average operating assets 24,950,000 enter a dollar amount 1,450,000 Return on investment 10 % 8 % enter a percentage of return on investment %
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