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4,500   4,125   Tuition per credit hour $120   $135   Credit hours 60,450   43,200   Registration, records, and marketing costs per enrolled student $275   $275   Instructional costs per credit hour $64   $60   Depreciation on classrooms and equipment $825,600   $825,600   Registration, records, and marketing costs vary by the number of enrolled students, wh

4,500   4,125   Tuition per credit hour $120   $135   Credit hours 60,450   43,200   Registration, records, and marketing costs per enrolled student $275   $275   Instructional costs per credit hour $64   $60   Depreciation on classrooms and equipment $825,600   $825,600   Registration, records, and marketing costs vary by the number of enrolled students, wh

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 18E: Variable costing income statement for a service company The actual and planned data for Underwater...
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Variable Costing Income Statement for a Service Company

The actual and planned data for Underwater University for the Fall term were as follows:

  Actual Planned
Enrollment 4,500   4,125  
Tuition per credit hour $120   $135  
Credit hours 60,450   43,200  
Registration, records, and marketing costs per enrolled student $275   $275  
Instructional costs per credit hour $64   $60  
Depreciation on classrooms and equipment $825,600   $825,600  

Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost.

Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term.

Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the Fall Term Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income
Transcribed Image Text:Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the Fall Term Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income
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