Variable 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: Amount Cost Behavior Activity Rate Cost Labor costs for loading and unloading railcars $175,582 Variable $46.00 per railcar Fuel costs Variable 12.40 per train-mile Train crew labor costs 460,226 267,228 Variable Switchyard labor costs 7.20 per train-mile 31.00 per railcar 118,327 Track and equipment depreciation 194,400 Variable Fixed Fixed Maintenance 129,600 $1,345,363 Operating statistics from the management information system reveal the following for April Total Atlanta/ Baltimore Baltimore/ Pittsburgh 10,200 2,160 $275 Pittsburgh/ Atlanta 14,080 1,232 $440 12,835 425 $600 37,115 3,817 Number of train-miles Number of railcars Revenue per railcar a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Calculate the contribution margin ratio, rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin Previous for reading a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Calculate 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 $ x Fuel costs x 0 bonbod Train crew labor costs x x Switchyard labor costs x Total variable costs Contribution margin Contribution margin ratio b. Evaluate the route performance of the railroad using the report in (a). The Atlanta/Baltimore route performs significantly worse than do the other two routes. A close examination of the operating statistics indicates that this route runs very few railcars, combined with fairly high total mileage. This combination suggests that the railroad is running many short trains on the railroad. That is, the railroad's profitability is very sensitive to the size, or length, of the train in railcar terms. Previous Check My Work Submit Assignment for Grading Email Instructor Save and Exit