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The Novak Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is
The Novak 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 managersi 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 ofthe company's accounting records. This was discovered when the current period's 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 $ $496000 55 Variable costs 5,502,500 295,200 Contribution margin 247.300 456.095 Controllable fixed costs 1,495,100 Controllable margin 79.000 220.095 Average operating assets 24,970,000 1,467,300
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