The Cheyenne Transportation Company uses a responsibility reporting system to measure the performance of its three inves
Posted: Mon May 02, 2022 6:53 am
The Cheyenne 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, with
question marks for missing amounts, appeared as follows.
Determine the missing pieces of information below.
Planes
Taxis
Limos
Service revenue
$enter a dollar amount
$502,400
$enter a dollar amount
Variable costs
5,509,100
enter a dollar amount
299,700
Contribution margin
enter a dollar amount
249,300
464,915
Controllable fixed costs
1,499,300
enter a dollar amount
enter a dollar amount
Controllable margin
enter a dollar amount
80,000
222,915
Average operating assets
24,999,000
enter a dollar amount
1,486,100
Return on investment
14
10
enter percentages
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, with
question marks for missing amounts, appeared as follows.
Determine the missing pieces of information below.
Planes
Taxis
Limos
Service revenue
$enter a dollar amount
$502,400
$enter a dollar amount
Variable costs
5,509,100
enter a dollar amount
299,700
Contribution margin
enter a dollar amount
249,300
464,915
Controllable fixed costs
1,499,300
enter a dollar amount
enter a dollar amount
Controllable margin
enter a dollar amount
80,000
222,915
Average operating assets
24,999,000
enter a dollar amount
1,486,100
Return on investment
14
10
enter percentages