Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among the routes (oty pairs): Atlanta/Baltimore, Baltimore/Pittsburgh and Pitsburg Atlanta, Significant costs, the cost behavior, and activity rates for April are as follows: Cast Amount Cost Behavior Activity Rate Labor costs for loading and unloading railcars $175,582 Variable $46.00 per ricar 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/ Pittsburgh/ Total Baltimore Pittsburgh Atlanta Number of train-miles 12,305 10,200 14,080 37,115 Number of railcars 425 2,160 1,232 3,817 Revenue per railcar 5600 $275 $440 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 Check My Work Previous 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 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 fairly total mileage. This combination suggests that the railroad is running many trains on Previous Check My Work Ei Submit Asument for Grading a. Prepare a contribution margin by route report for East Coast Road 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 S Fuel costs Train crew labor costs Switchyard labor costs Total variable costs 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 fairly total mileage. This combination suggests that the railroad is running many the railroad. That is, the railroad's profitability is sensitive to the size, or length, of the train in railcar terms. trains on Previous Check My Work
