Variable Costing Income Statement for a Service Company 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 Labor costs for loading and unloading railcars $175,582 Variable Activity Rate $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 Track and equipment depreciation Maintenance 194,400 Variable Fixed 31.00 per railcar Fixed 129,600 $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 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