d 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. Planes Taxis Limos Service revenue $ ? $450,000 $ ? Variable costs 5,000,000 ? 320,000 Contribution margin ? 180,000 380,000 Controllable fixed costs 1,500,000 ? ? Controllable margin ? 70,000 176,000 Average operating assets 25,000,000 ? 1,600,000 Return on investment 12% 10% ?
Company B 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
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.
| Planes | Taxis | Limos | |
| Service revenue | $ ? | $450,000 | $ ? |
| Variable costs | 5,000,000 | ? | 320,000 |
| Contribution margin | ? | 180,000 | 380,000 |
| Controllable fixed costs | 1,500,000 | ? | ? |
| Controllable margin | ? | 70,000 | 176,000 |
| Average operating assets | 25,000,000 | ? | 1,600,000 |
| Return on investment | 12% | 10% | ? |
Instructions
Determine the missing pieces of information above !
Calculate the service revenue
Calculate the variable costs
Calculate the contribution margin
Calculate the Controllable fixed cost
Calculate the Controllable margin
Calculate the average operating assets
Calculate the return on Investment
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