options for (B) 1 Atlanta/ Baltimore, baltimore/ Pittsburgh, Pittsburger/Atlanta,
(2) very few, a lot of
(3) high, low
(4) short, long
(5) very, slighlty, not
a Wariable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pitsburgh, 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 ralicars $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 pertrait-mile Switchyard labor costs 118,327 Variable 31.00 per ricar Track and equipment depreciation 194,400 Fixed Maintenance 129,600 Fixed $1,345,363 Operating statistics from the management information witem reveal the following for Apek: Atlanta/ Baltimore/ Pittsburgh/ Total Baltimore Pittsburgh Atlanta Number of trainemies 12.835 10,200 14,050 37,115 2,160 1,232 3,817 Reverve per railcar $500 $440 Number of ra cars $275 a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin. East Coast Railroad Company Contribution Margin by Route For the Month Ended April 30 Atlanta/Baltimore Baltimore/Pittsburgh Pittsburgh/Atlanta Total Revenues Variable costs: Labor costs for loading and unloading railcars Fuel costs Train crew labor costs Switchyard labor costs Total variable costs DD00000 Contribution margin Contribution margin ratio b. Evaluate the route performance of the railroad using the report in (a) The route performs significantly worse than do the other two routes. A close examination of the operating statistics indicates that this route runs railcars, combined with only total mileage. This combination wggests that the railroad is running many trains on the road. That is, the railroad's profitability is Sensitive to the size or length of the traininta carte