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The Blue Spruce Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance
The Blue Spruce 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, with question marks for missing amounts, appeared as follows. Determine the missing pieces of information below. Planes Taxis Limos Service revenue $ $499,400 $ Variable costs 5,503,000 301,200 Contribution margin 253,700 483,876 Controllable fixed costs 1,495,100 Controllable margin 77,000 243,376 Average operating assets 25,014,900 1,521,100 Return on investment 11 % 10 % %
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