20hw

Answer b

eBook Contribution Margin Reporting and Analysis-Service Company 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 2014, are as follows: Cost Labor costs for loading and unloading railcars Fuel costs Train crew labor costs Switchyard labor costs Track and equipment depreciation Maintenance Amount Cost Behavlor Variable$46.00 per railcar Activity Rate 175,582 460,226 267,228 118,327 194,400 129,600 $1,345,363 Variable Variable Variable Fixed Fixed 12.40 per train-mile 7.20 per train-mile 31.00 per railcar Operating statistics from the management information system reveal the following for April: Atlanta/ Baltimore/ Pittsburgh/ PttsburghAtlanta 14,080 1,232 $440 Baltimore Pittsburgh Total Number of train-miles Number of railcars Revenue per railcar 12,835 425 $600 10,200 2,160 $275 37,115 3,817