Contribution margin reporting and analysis for a service company Instructions Labels and Amount Descriptions Contribution Margin by Route Contribution Margin Analysis Contribution Margin Analysis Shaded cells fave feedback Pitsburgh Manta Significant costs, their cost behavior and activity rates for Apriliare as follows: D. Prepare a consisto evaluate managements actions in May. Ale the May planned and price, and it cost was the same as Ant. Peter to the list of Labels and Amount Description for the exact wording of the answer choices tyre e velo complete the shading. Acalon will appear required for those bones in which you must enter subtracted or negative numbers use a mhussion an amoure is zero Cont Amount Cost Behavior Aulvity Rate Laborcows for loading and unloading to $175,382 Variable $16.00 per Fuel cos 460224 ble 12.00 per trainie 207.228 Variable 7.20 per Switchyard labor costs 116.327 Vaatte 31.00 per ricar Track and depreciation 104 400 Fixed Score: 1/72 East Coast Road Company Contribution Margin Analysis Atari Bekimore Rose For the Month Ended May 31 128.000 Food 51.345.353 $29.791.00 Pared Contribution 2 Effect of changes in Sales quantity factor 6 Operating from the management information system reveal the following for April $165.000.00 0.00009 Atlanta Baltimore Baltimore Pittsburgh Pittsburg Aflerta 12,835 10.200 54,000 95,000.00 Number of rannies Number of Revenue pour Total 37,115 3.817 100 $275 5221.175.00 Efect of changes in variable cost of goods sold Variable costantly factor Unit cost factor Total effect of changes in viable cost of goods sold Ntulation margin 0.00 The management of Coal Company improved the profitability of the All Batore role in May by reducing the price of a railar from 2000. This price reduction increased the demand for services. Thus, the number of stars increased by 275 alcars to a total of 700 ratars. The was accomplished by increasing the size of each other fans. Thus, the number of trane w charged All the city and unchanged 21,175.00 544554.00 Check My W Previous All work saved Save and Et Submitment for Gradine Instructions X East Coast Railroad Company transports commodities among three routes (city-pars): Atlanta Baltimore, Baltimore/Pittsburgh, and Pittsburgh Atlanta. Significant costs, their cost behavior and activity rates for Apri 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 460,220 Variable 12.40 per train-mile Train crew labor costs 267,228 Variable 7.20 portrai-mile Switchyard labor costs 118.327 Variable 31,00 per railcar Track and equipment depreciation 194.400 Fixed Maintenance 129,600 Fixed $1,345,353 Operating statistics from the management Information system reveal the following for April Atlanta Baltimore 12,835 Number of train-miles Number of railcars Revenue per railcar Baltimore Pinsburgh 10,200 2,160 $275 Pittsburgh Atlanta 14,000 1.212 $440 Total 37,115 3.817 5600 The management of East Coast Railroad Company improved the profitability of the Atlanta Baltimore route in May by reducing the price of a railcar from $600 to $500. This price reduction increased the demand for ral services. Thus, the number of railcars increased by 276 railcars to a total of 700 railcars. This was accomplished by increasing the size of each train but not the number of trains. Thus, the number of train-miles was unchanged. All the activity rates remained unchanged. Required: a. Prepare a contribution margin report for the Atlanta/Baltimore route for May. Calculate the contribution margin ratio in percentage terms to one decimal place. b. Prepare a contribution margin analysis to evaluate management's actions in May. Assume that the May planned quantity, price, and unit cost was the same as April. If an amount is zero, enter "O". "Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Contribution margin reporting and analysis for a service company Instructions Labels and Amount Descriptions Contribution Margin by Route Contribution Margin by Route Shaded cells have feedback. a. Prepare a contribution margin report for the Atlanta/Baltimore route for May. Calculate the contribution margin ratio in percentage terms to one decimal place. Refer to the Nsts of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (;) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Score: 74/74 East Coast Railroad Company Contribution Margin for Atlanta/Baltimore Route For the Month Ended May 31 1 Revenue $350,000.00 2 Variable costs: 3 Labor costs for loading and unloading railcars $32,200.00 159,154.00 4 Fuel costs 5 Train crew labor costs 92,412.00 7 6 Switchyard labor costs Total variable costs # Contribution margin 9 Contribution margin ratio 21,700.00 $305,466.00 $44,534.00 12.7% Points: 18/18 Check My Work Contribution Margin by Route Contribution Margin Analysis Contribution Margin Analysis Shaded cells have feedback. ute del Score: 61/72 he ol $(29,291.00) 3 East Coast Railroad Company Contribution Margin Analysis - Atlanta/Baltimore Route For the Month Ended May 31 1 Planned Contribution margin 2 Effect of changes in sales: Sales quantity factor Unit price factor Total effect of changes in sales 6 Effect of changes in variable cost of goods sold: Variable cost quantity factor Unit cost factor Total effect of changes in variable cost of goods sold 10 Actual contribution margin $165,000.00 (70,000.00) 4 5 95,000.00 7 $221,175.00 8 0.00 9 21,175.00 $44,534.00 Points: 15.25/18 Feedback