Variable costing income statement for a service company obj. 4, 6 East Coast Railroad Company transports commodities among three routes (city-pairs):

Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Cost Amount Cost Behavior Activity Rate Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar Fuel costs 460,226 Variable 12.40 per train-mile Train crew labor costs 267,228 Variable 7.20 per train-mile Switchyard labor costs 118,327 Variable 31.00 per railcar Track and equipment depreciation 194,400 Fixed Maintenance 129,600 Fixed $1,345,363 Operating statistics from the management information system reveal the following for April:
Atlanta/
Baltimore Baltimore/
Pittsburgh Pittsburgh/
Atlanta Total Number of train-miles 12,835 10,200 14,080 37,115 Number of railcars 425 2,160 1,232 3,817 Revenue per railcar $600 $275 $440

a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Calculate the contribution margin ratio in whole percents, rounded to one decimal place.

b. Evaluate the route performance of the railroad using the report in (a).