Wycuted Cpeice lteane Gtanenent for a fervioe Compont, = 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. b. Evaluate the route performance of the rallroad 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 I sensitive to the size, or length, of the train in ralcar terms. Feettack r Check My Whok b. Is the railroad's profitabily is sensitive to the size, or length, of the train? Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three routes (city-pairs): Atianta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: Operating statistics from the management information system reveal the following for April: a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of Apri. Compute the contribution margin ratio. Rounded to one decimal piace. If required, use the minus sign to indicate a negative contribution margin