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The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance
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. Service revenue $ Planes Taxis $503,300 Limos Variable costs 5,501,900 299,300 Contribution margin 245,300 490,656 Controllable fixed 1,495,300 costs Controllable margin Average operating assets Return on investment 24,957,600 84,000 251,056 1,476,800 11 % 12 % 96
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