Question
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
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. (Round intermediate calculations and final answers to 0 decimal places, e.g. 1,255.)
Planes axis mos $504,700 s Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment 5,502,300 296,900 255,000 485,420 1,504,900 76,000 244,320 25,002,400 1,527,000 12 % 7% LINK TO TEXTStep by Step Solution
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