Question

In: Accounting

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...

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 Activity Rate
Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar
Fuel costs      460,226 Variable    12.40 per train-mile
Train crew labor costs      267,228 Variable       7.20 per train-mile
Switchyard labor costs      118,327 Variable     31.00 per railcar
Track and equipment depreciation      194,400 Fixed
Maintenance      129,600 Fixed
Total Amount $1,345,363

Operating statistics from the management information system reveal the following for April:

Atlanta/Baltimore Baltimore/Pittsburgh Pittsburgh/Atlanta Total
Number of train miles 12,835 10,200 14,080 37,115
Number of railcars        425    2,160    1,232    3,817
Revenue per railcar     $600      $275     $440

Instructions

1. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio in whole percents, rounded to one decimal place.

2. Discuss the route performance of the railroad using the above report.

Solutions

Expert Solution

Answer is given below

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...
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 Activity Rate Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar Fuel costs      460,226 Variable    12.40 per train-mile Train crew labor costs      267,228 Variable       7.20 per train-mile Switchyard labor costs      118,327 Variable     31.00 per railcar Track and equipment depreciation...
East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...
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 Activity Rate Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar Fuel costs      460,226 Variable    12.40 per train-mile Train crew labor costs      267,228 Variable       7.20 per train-mile Switchyard labor costs      118,327 Variable     31.00 per railcar Track and equipment depreciation...
East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...
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 Activity Rate Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar Fuel costs      460,226 Variable    12.40 per train-mile Train crew labor costs      267,228 Variable       7.20 per train-mile Switchyard labor costs      118,327 Variable     31.00 per railcar Track and equipment depreciation...
Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three...
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 Activity Rate Labor costs for loading and unloading railcars $151,360 Variable $43.00 per railcar Fuel costs 409,360 Variable 11.90 per train-mile Train crew labor costs 199,520 Variable 5.80 per train-mile Switchyard labor costs 114,400 Variable 32.50 per railcar Track and equipment...
Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three...
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 Activity Rate Labor costs for loading and unloading railcars $175,582 Variable $46.00 per railcar Fuel costs 460,226 Variable 12.40 per train-mile Train crew labor costs 267,228 Variable 7.20 per train-mile Switchyard labor costs 118,327 Variable 31.00 per railcar Track and equipment...
Variable Costing Income Statement for a Service Company East Coast Railroad Company transports commodities among three...
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 Activity Rate Labor costs for loading and unloading railcars $186,930 Variable $46.50 per railcar Fuel costs 399,040 Variable 11.60 per train-mile Train crew labor costs 233,920 Variable 6.80 per train-mile Switchyard labor costs 123,414 Variable 30.70 per railcar Track and equipment...
East Coast Waffles, Inc., an Atlanta-based company which owns and operates more than 100 Waffle House...
East Coast Waffles, Inc., an Atlanta-based company which owns and operates more than 100 Waffle House restaurants in Florida and Virginia, fired an employee who claimed that his fellow servers at a Tampa Florida Waffle House were harassing several customers because of their race. The employee that was fired did not claim "whistleblower" status, the employee simply claimed that such action was improper. Is this permitted (firing the employee who reported the actions of the others) under Title VII of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT