Exercise 14-19 The Flounder Transportation Company uses a responsibility reporti

Question

Exercise 14-19 The Flounder 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 respons bility reports were being prepared. The printout of the actual operating results appeared as folows. 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 $503,400 5,510,000 295,000 Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment 253,600 03,752 1,504,800 78,000 259,352 25,004,500 1,525,600 11% 8%

Explanation / Answer

Planes Taxis Limos Service revenue 9765295 503400 798752 Variable costs 5510000 249800 295000 Contribution margin 4255295 253600 503752 Controllable fixed costs 1504800 175600 244400 Controllable margin 2750495 78000 259352 Average operating assets 25004500 975000 1525600 Return on investment 11% 8% 33%

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