Enrollment Tuition per credit hour Credit hours Registration, records, and marketing costs per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment Line Item Description Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Actual Amount Contribution margin Depreciation on classrooms and equipment 5,000 $115 80,000 $1,875,000 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of cred hours. Depreciation is a fixed cost. $300 $45 Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Broadwater Institute & Technical School Variable Costing Income Statement For the Fall Term Planned 4,500 $100 72,000 $300 $40 $1,875,000
Enrollment Tuition per credit hour Credit hours Registration, records, and marketing costs per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment Line Item Description Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Actual Amount Contribution margin Depreciation on classrooms and equipment 5,000 $115 80,000 $1,875,000 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of cred hours. Depreciation is a fixed cost. $300 $45 Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Broadwater Institute & Technical School Variable Costing Income Statement For the Fall Term Planned 4,500 $100 72,000 $300 $40 $1,875,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i.3
Transcribed Image Text:Enrollment
Tuition per credit hour
Credit hours
Registration, records, and marketing costs per enrolled student
Instructional costs per credit hour
Depreciation on classrooms and equipment
Line Item Description
Revenue
Variable costs:
Registration, records, and marketing costs $
Instructional costs
Total variable costs
Actual
Amount
Contribution margin
Depreciation on classrooms and equipment
5,000
$115
80,000
$1,875,000
Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of cred
hours. Depreciation is a fixed cost.
$300
$45
Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term.
Broadwater Institute & Technical School
Variable Costing Income Statement
For the Fall Term
Planned
4,500
$100
72,000
$300
$40
$1,875,000
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