PlanesTaxisLimosService revenue%24$504,700$4Variable costs5,502,300296.900Contribution margin255,000485,420Controllable fixed1,504,900costsControllable margin76,000244,320Average operating25,002,4001,527,000assetsReturn on investment12 %Toxtbook and Media The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three investmentcenters: Planes, Taxis, and Limos. Segment performance is measured usinga system of responsibility reports and return on investmentcalculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the resultsshown in these reports.Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This wasdiscovered when the current period's responsibility reports were being prepared. The printout of the actual operating resultsappeared as follows.Determine the missing pieces of information below. (Round intermediate calculations and final answers to 0 decimal places, eg. 1,255.)PlanesTaxisLimosService revenue24$504,700$4Variable costs5,502,300296,900Contribution margin255.000485 420

Contribution margin = Service revenue - variable costs Controllable margin = Contribution margin…

Planes Taxis Service revenue %24 $504,700 $4 Variable costs 5,502,300 296,900 Contribution margin 255,000 485,420 Controllable fixed 1,504,900 costs Controllable margin 76,000 244,320 Average operating 25,002,400 1,527,000 assets Return on investment 12 % 7 %

Planes Taxis Service revenue %24 $504,700 $4 Variable costs 5,502,300 296,900 Contribution margin 255,000 485,420 Controllable fixed 1,504,900 costs Controllable margin 76,000 244,320 Average operating 25,002,400 1,527,000 assets Return on investment 12 % 7 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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