Exercise 22-19 Planes Taxis Limos $498,500 5,502,400 297,900 250,900 522,340 1,4
ID: 2571580 • Letter: E
Question
Exercise 22-19
Planes
Taxis
Limos
$498,500
5,502,400
297,900
250,900
522,340
1,499,600
83,000
277,740
24,960,500
1,543,000
13
7
Open Show Work
Exercise 22-19
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 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.
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 $$498,500
$ Variable costs5,502,400
297,900
Contribution margin250,900
522,340
Controllable fixed costs1,499,600
Controllable margin83,000
277,740
Average operating assets24,960,500
1,543,000
Return on investment13
%7
% % Click if you would like to Show Work for this question:Open Show Work
Explanation / Answer
Fill missing amount :
Planes Taxis Limos Service revenue 10246865 498500 820240 Variable costs 5502400 247600 297900 Contribution margin 4744465 250900 522340 Controllable fixed costs 1499600 167900 244600 Contollable margin 3244865 83000 277740 Average operating assets 24960500 1185714 1543000 Return on investment 13% 7% 18%Related Questions
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