Variable Costing Income Statement for a Service Company Operating statistics from the management information system reveal the following for April: East Coast Railroad Company Contribution Margin by Route ca.2L- NandL r-dad A.zil sn 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 the railroad. That is, the railroad's profitability is sensitive to the size, or length, of the train in railcar terms