Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Monty Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is

The Monty 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

$501,500

$enter a dollar amount

Variable costs

5,493,000

enter a dollar amount

304,800

Contribution margin

enter a dollar amount

252,100

442,552

Controllable fixed costs

1,498,500

enter a dollar amount

enter a dollar amount

Controllable margin

enter a dollar amount

85,000

200,252

Average operating assets

25,032,400

enter a dollar amount

1,540,400

Return on investment

13

%

10

%

enter percentages

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Eddie McLaney, Peter Atrill

4th Edition

9780273688471

More Books

Students also viewed these Accounting questions