User Account

All Pages

Problem - Contribution Margin Reporting and Analysis

Assignment Help Accounting Basics
Reference no: EM132685945

Problem - Contribution Margin Reporting and Analysis-Service Company

The management of Mid-Atlantic Railroad Company introduced in Exercise 20-20 improved the profitability of the Boston/Philadelphia route in June by reducing the price of a railcar from $614 to $556. This price reduction increased the demand for rail services. Thus, the number of railcars increased by 236 railcars to a total of 768 railcars. This was accomplished by increasing the size of each train but not the number of trains. Thus, the number of train-miles was unchanged. All the activity rates remained unchanged.

Required -

a. Prepare a contribution margin report for the Boston/Philadelphia route for June. Calculate the contribution margin ratio in percentage terms to one decimal place.

b. Prepare a contribution margin analysis to evaluate management's actions in June. Assume that the June planned quantity, price, and unit cost was the same as May.

Reference no: EM132685945

Questions Cloud

Designing health promotion program : You have been designing a health promotion program that targets the most significant health problem (Cancer)within your community
What is the return on equity-lee sun : Lee Sun's has sales of $4,150, total assets of $3,850, and a profit margin of 4 percent. The firm has a total debt ratio of 40 percent.
Creating a business plan for a new health care organization : This week you will begin working on creating a Business Plan for a new health care organization. The work that you do for your original discussion board post.
Complexities involved with strategic planning process : Examine how metrics are utilized to drive desired health outcomes. Analyze the complexities involved with the strategic planning process.
Problem - Contribution Margin Reporting and Analysis : Prepare contribution margin report for the Boston/Philadelphia route for June. Calculate the contribution margin ratio in percentage terms to one decimal place
What is the company wacc-golden eagle : Golden Eagle has 1,250 bonds outstanding with a market value of $980 each. The pretax cost of debt is 7.2 percent. The firm also has 46,000 shares of common
Evolution and adoption of health information systems : Discuss what the American Health Information Management Association (AHIMA) is and its significance to health information technology.
Variance of the company returns over period : You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 15 percent, -15 percent, 17 percent, 27 percent
What are your final conclusions on the case : Lastly, you are a healthcare administrator review the malpractice case. You have heard both Dr. Harris's side and the family's side.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd