I need help with the ones that are wrong. a. Prepare a contribution margin repor
ID: 2469503 • Letter: I
Question
I need help with the ones that are wrong.
a. Prepare a contribution margin report for the Atlanta/Baltimore route for May. Calculate the contribution margin ratio in percentage terms to one decimal place East Coast Railroad Company Contribution Margin for Atlanta/Baltimore Route For the Month Ended May 31,2014 Revenues 350000 Labor costs for loading and unloading railcars 32200 Fuel costs 159154 Train crew labor costs 92412 Switchyard labor costs 21700 Total variable costs 305466 Contribution margin 44534 Contribution margin ratio 12.7 %Explanation / Answer
Per Rail Mile Per Rail Car Ans 1 Planned Revenue 600 425*600 2,55,000.00 Planned Labour cost for unloading 46.00 425*46 19,550.00 Planned Fuel Cost 12.4 374.48 425*374.48 1,59,154.00 Planned Train New Labour cost 7.2 217.44 425*217.44 92,412.00 Planned Switch yard cost 31.00 425*31 13,175.00 Planned Total Variable Cost 668.92 2,84,291.00 Planned Contribution Margin -29,291.00 Ans 2 Planned Contribution Margin -29,291.00 Effect of Change in Sales Sales Quantity Factor (700-425)*600 1,65,000.00 Unit Price Factor 700*(500-600) -70,000.00 Total Effect of Change in Sales 95,000.00 Effect of Changes in VC Variable Cost Quantity Factor (425-725)*77 -21,175.00 Unit Cost Factor - Total Effect of Change in Fixed Cost -21,175.00 Actual Contribution Margin 44,534.00