The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three...

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The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three investment

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Answer 1

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PARTICULARS	PLANES	TAXIS	LIMOS
A. SERVICE REVENUE	$ 9749739 (550300+4246739)	$499400	$ 785076 (301200+483876)
B. VARIABLE COSTS	5503000	245700 (499400- 253700)	301200
C. CONTRIBUTION MARGIN (A-B)	4246739 (2751639+1495100)	253700	483876
D. CONTROLLABLE FIXED COSTS	1495100	176700 (253700-77000)	240500 (483876-243376)
E. CONTROLLABLE MARGIN (C-D)	2751639 (25014900×11%)	77000	243376
F. AVERAGE OPERATING COSTS	25014900	641667 (77000/11%)	1521100
G. RETURN ON INVESTMENT (E/F)	11%	12%	16% (243376/1521100)

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