Variable Costing Income Statement for a Service Company The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows: Line Item Description Actual Planned Enrollment 5,000 4,500 Tuition per credit hour $115 $100 Credit hours 80,000 72,000 Registration, records, and marketing costs per enrolled student $300 $300 Instructional costs per credit hour $45 $40 Depreciation on classrooms and equipment $1,875,000 $1,875,000 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. Broadwater Institute & Technical SchoolVariable Costing Income StatementFor the Fall Term Line Item Description Amount Revenue Variable costs: Registration, records, and marketing costs Instructional costs Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income
Variable Costing Income Statement for a Service Company The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows: Line Item Description Actual Planned Enrollment 5,000 4,500 Tuition per credit hour $115 $100 Credit hours 80,000 72,000 Registration, records, and marketing costs per enrolled student $300 $300 Instructional costs per credit hour $45 $40 Depreciation on classrooms and equipment $1,875,000 $1,875,000 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. Broadwater Institute & Technical SchoolVariable Costing Income StatementFor the Fall Term Line Item Description Amount Revenue Variable costs: Registration, records, and marketing costs Instructional costs Total variable costs Contribution margin Depreciation on classrooms and equipment Operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variable Costing Income Statement for a Service Company
The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows:
| Line Item Description | Actual | Planned |
|---|---|---|
| Enrollment | 5,000 | 4,500 |
| Tuition per credit hour | $115 | $100 |
| Credit hours | 80,000 | 72,000 |
| Registration, records, and marketing costs per enrolled student | $300 | $300 |
| Instructional costs per credit hour | $45 | $40 |
| $1,875,000 | $1,875,000 |
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.
Broadwater Institute & Technical SchoolVariable Costing Income StatementFor the Fall Term
| Line Item Description | Amount |
|---|---|
| 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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