The Pletcher Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is
The Pletcher 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.
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Instructions
Determine the missing pieces of informationabove.
Planes Taxis $500,000 200,000 80,000 Limos Service revenue Variable costs Contribution margirn Controllable fixed costs Controllable margin Average operating assets 320,000 480,000 5,500,000 1,500,000 25,000,000 240,000 1,600,000 Return on investment 12% 10%
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