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The Oriole Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance
The Oriole 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 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 below. Service revenue Variable costs Planes 5,506,000 Taxis $498,700 Limos 296,800 Contribution margin 246,000 471.445) Controllable fixed 1,504,700 costs Controllable margin Average operating 24,987,600 79,000 228,645 1,524,300 assets Return on investment 11 % 8%
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