The Li Transportation 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.

Instructions

Determine the missing pieces of information above.

Transcribed Image Text:

Limos Taxis Planes HK$500,000 Service revenue Variable costs Contribution margin Controllable fixed costs HK$ HK$ ? 5,500,000 300,000 480,000 250,000 1,500,000 ? Controllable margin 210,000 80,000 |Average operating assets 25,000,000 1,500,000 Return on investment 12% 10%