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

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.

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
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	%

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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. The planned contribution margin is given below. If an amount is zero, enter "0".

East Coast Railroad Company
Contribution Margin AnalysisAtlanta/Baltimore Route
For the Month Ended May 31
Planned contribution margin		$(29,291)
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		$