Contribution Margin Reporting and AnalysisService 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: Operating statistics from the management information system reveal the following for April: 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 rail services. Thus, the number of railcars increased by 275 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. Hide 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. East Coast Railroad Company Contribution Margin for Atlanta/Baltimore Route For the Month Ended May 31, 2014 Revenues $ Labor costs for loading and unloading railcars $ Fuel costs Train crew labor costs Switchyard labor costs Total variable costs $ Contribution margin $ Contribution margin ratio % Hide 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 "0". East Coast Railroad Company Contribution Margin AnalysisAtlanta/Baltimore Route For the Month Ended May 31, 2014 Planned contribution margin $ Effect of change in sales: Sales quantity factor $ Unit price factor Total effect of change in sales 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 Actual contribution margin $