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Looking for the answer to the Effect of change in sales for the Sales quantity factor & Unit price factor located in table B of
Looking for the answer to the Effect of change in sales for the Sales quantity factor & Unit price factor located in table B of this question. All other answers for this question has been incorrect.
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
Contribution Margin Reporting and Analysis-Service Company East Coast Railroad Company transports commodities among three routes (city-pairs): Adanta Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April 2014, are as follows Amount Cost Behavior Variable Variable Cost Activity Rate Labor costs for loading and unloading railcars Fuel costs Train crew labor costs Switchyard labor costs Track and equipment depreciation 175,582 $4600 per railcar 12.40 per train-mile 7.20 per train-mile 267,228 118,327 31.00 per railcar Fixed Fixed 129,600 Operating statistics from the management information system reveal the following for April; Atlantal Baltimore Pittsburgh/ Baltimore PttsburghAtanta Total Number of train-miles Number of railcars Revenue per railcar 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 s500. 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. 12,835 425 14,080 1,232 37,115 3,817 2,160 5275Step by Step Solution
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