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Ive included all information to the problem. maybe someone else can take a look? Nothing else i can add riable costing income statement for a
Ive included all information to the problem. maybe someone else can take a look? Nothing else i can add
riable costing income statement for a service company Instructions Labels and Amount Descriptions Contribution Margin by Route nstructions 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 Labor costs for loading and unloading railcars $153,972 Variable 415,128 Variable 259,455 Variable 120,978 Variable Fuel costs Train crew labor costs Switchyard labor costs Track and equipment depreciation Maintenance Cost Behavior Activity Rate $42.00 per railcar 1.20 per train-mile 7.00 per train-mile 33.00 per railcar 94,400 Fioxed 31,400 Fixed $1,275,333 Labels April 30 For the Month Ended April 30 Variable costs Amount Descriptions Contribution margin Contribution margin ratio Fixed costs Fuel costs Income (Loss) from operations Labor costs for loading and unloading railcars evenue Switchyard labor costs Total fixed costs Total variable costs Train crew labor costs East Coast Railroad Company Contribution Margin by Route (Label) Baltimore/ Pittsburgh Pittsburgh Atlanta/ Total Baltimore Atlanta (Label L0 b. Evaluate the route performance of the railroad using the report in (a) The that this route runs route performs significantly worse than do the other two routes. A close examination of the operating statistics indicates railcars, combined with fairly total mileage. This combination suggests that the railroad is running many trains on the railroad. That is, the railroad's profitability is sensitive to the size, or length, of the train in railcar terms Step by Step Solution
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