Question: 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
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.
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Instructions
Determine the missing pieces of informationabove.
Planes Taxis 00,000 $2 250,000 80,000 Limos Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margirn Average operating assets Return on investment 5,500,000 1,500,000 25,000,000 300,000 480,000 210,000 ,500,000 12% 10%
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