Exercise 10-19

The Ferrell 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 appeared as follows. Determine the missing pieces of information below. (Round intermediate calculations and final answers to 0 decimal places, e.g. 1,255.)

		Planes			Taxis			Limos
Service revenue		$			$504,200			$
Variable costs		5,501,900						297,700
Contribution margin					253,000			492,188
Controllable fixed costs		1,499,100
Controllable margin					82,000			250,988
Average operating assets		24,959,800						1,476,400
Return on investment		10	%		10	%			%