Question
The Ivanhoe Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is
The Ivanhoe 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 | $504,700 | $enter a dollar amount | ||||||
Variable costs | 5,491,900 | enter a dollar amount | 298,500 | ||||||
Contribution margin | enter a dollar amount | 252,200 | 511,002 | ||||||
Controllable fixed costs | 1,501,900 | enter a dollar amount | enter a dollar amount | ||||||
Controllable margin | enter a dollar amount | 81,000 | 268,902 | ||||||
Average operating assets | 25,023,100 | enter a dollar amount | 1,493,900 | ||||||
Return on investment | 10 | % | 8 | % | enter a percentage of return on investment | % |
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