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 Behavior Activity Rate Cost Amount 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 Variable 7.20 per train-mile 267,228 Switchyard labor costs Variable 31.00 per railcar 118,327 Track and equipment depreciation 194,400 Fixed Fixed Maintenance 129,600 $1,345,363 Operating statistics from the management information system reveal the following for April: Atlanta/ Baltimore/ Pittsburgh Baltimore 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 $440 $600 $275 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