Question

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 2014, 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 April. Calculate the contribution margin ratio in whole percent’s, rounded to one decimal place.
b. Evaluate the route performance of the railroad using the report in(a).


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  • CreatedJune 27, 2014
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