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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Homework help. Chapter 21 number 4. Need help filling in the missing data. Thank You!

Transcribed Image Text: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
Fuel costs
Train crew labor costs.
Switchyard labor costs
Track and equipment depreciation
Maintenance
Number of train-miles.
Number of railcars
Revenue per railcar
194,400
129,600
$1,345,363
Operating statistics from the management information system reveal the following for April:
Baltimore/ Pittsburgh/
Pittsburgh
Atlanta
10,200
2,160
$275
Atlanta/
Baltimore
12,835
Total variable costs
425
$600
Contribution margin
Contribution margin ratio
Line Item Description
Revenues
Variable costs:
Labor costs for loading and unloading railcars $
Fuel costs
Train crew labor costs
Switchyard labor costs
$175,582
460,226
267,228
118,327
East Coast Railroad Company
Contribution Margin by Route
For the Month Ended April 30
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.
$
Variable
Variable
Variable
Variable
Fixed
Fixed
$
14,080
1,232
$440
%
Activity Rate
$46.00 per railcar
12.40 per train-mile.
Atlanta/ Baltimore/ Pittsburgh/
Baltimore Pittsburgh Atlanta
7.20 per train-mile
31.00 per railcar
%
Total
37,115
3,817
%
Total
%
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