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The Medford Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is
The Medford Burkett 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. Format all dollar amounts with $, commas, and zero decimal places. Format percentages with % and zero decimal places. Planes Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on Investment 5,000,000 1,500,000 25,000,000 Taxis $450,000 180,000 70,000 12% 10% Limos 320,000 380,000 176,000 1,600,000
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