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Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 20, Problem 20.22EX
Variable costing income statement and contribution margin analysis 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 cost per enrolled student | $275 | $275 |
Instructional costs per credit hour | $64 | $60 |
$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.
- A. Prepare a variable costing income statement showing the contribution margin and income from operations for the Fall term.
- B. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall term.
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Students have asked these similar questions
Variable costing income statement for a service companyThe actual and planned data for Underwater University for the Fall termwere as follows:
EnrollmentTuition per credit hourCredit hoursRegistration, records, and marketing cost per enrolled studentInstructional costs per credit hourDepreciation on classrooms and equipment
4,500$12060,450$275
$64$825,600
4,125$13543,200$275
$60$825,600
Registration, records, and marketing costs vary by the number ofenrolled students, while instructional costs vary by the number of credithours. Depreciation is a fixed cost.
A. Prepare a variable costing income statement showing thecontribution margin and operating income for the Fall term.B. Prepare a contribution margin analysis report comparingplanned with actual performance for the Fall term.
Variable Costing Income Statement for a Service Company
The actual and planned data for Underwater University for
the Fall term were as follows:
Enrollment
Tuition per credit hour
Credit hours
Registration, records, and marketing costs per
enrolled student
Revenue
Variable costs:
Registration, records, and marketing costs $
Instructional costs
Total variable costs
Instructional costs per credi ur
Depreciation on classrooms and equipment
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.
Contribution margin
Depreciation on classrooms and equipment
Operating income
$
Actual
$
4,500
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
$
$120
60,450
$275
$64
$825,600
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:
Actual
Planned
Enrollment
Tuition per credit hour
Credit hours
Line Item Description
Revenue
Variable costs
Registration, records, and marketing costs
Registration, records, and marketing costs per enrolled student
Instructional costs per credit hour
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 School
Variable Costing Income Statement
For the Fall Term
Instructional costs
Total variable costs
Contribution margin
Depreciation on classrooms and equipment
Operating income
Amount
9.200.000 ✓…
Chapter 20 Solutions
Financial & Managerial Accounting
Ch. 20 - What types of costs are customarily included in...Ch. 20 - Which type of manufacturing cost (direct...Ch. 20 - Which of the following costs would be included in...Ch. 20 - In the variable costing income statement, how are...Ch. 20 - Since all costs of operating a business are...Ch. 20 - Discuss how financial data prepared on the basis...Ch. 20 - Why might management analyze product...Ch. 20 - Explain why rewarding sales personnel on the basis...Ch. 20 - Discuss the two factors affecting both sales and...Ch. 20 - How is the quantity factor for an increase or a...
Ch. 20 - Explain why service companies use different...Ch. 20 - Variable costing Marley Company has the following...Ch. 20 - Variable costingproduction exceeds sales Fixed...Ch. 20 - Variable costing sales exceed production The...Ch. 20 - Analyzing income under absorption and variable...Ch. 20 - Contribution margin by segment The following...Ch. 20 - Contribution margin analysis The actual variable...Ch. 20 - Inventory valuation under absorption costing and...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Cost of goods manufactured, using variable costing...Ch. 20 - Variable costing income statement On November 30,...Ch. 20 - Absorption costing income statement On March 31....Ch. 20 - Variable costing income statement The following...Ch. 20 - Estimated income statements, using absorption and...Ch. 20 - Variable and absorption costing Ansara Company had...Ch. 20 - Prob. 20.10EXCh. 20 - Prob. 20.11EXCh. 20 - Product profitability analysis Power Train Sports...Ch. 20 - Territory and product profitability analysis Coast...Ch. 20 - Sales territory and salesperson profitability...Ch. 20 - Segment profitability analysis The marketing...Ch. 20 - Prob. 20.16EXCh. 20 - Contribution margin analysis sales Select Audio...Ch. 20 - Prob. 20.18EXCh. 20 - Contribution margin analysis variable costs Based...Ch. 20 - Variable costing income statement for a service...Ch. 20 - Contribution margin reporting and analysis for a...Ch. 20 - Variable costing income statement and contribution...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Salespersons' report and analysis Walthman...Ch. 20 - Segment variable costing income statement and...Ch. 20 - Contribution margin analysis Farr Industries Inc....Ch. 20 - Prob. 20.1BPRCh. 20 - Income statements under absorption costing and...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Salespersons' report and analysis Pachec Inc....Ch. 20 - Variable costing income statement and effect on...Ch. 20 - Contribution margin analysis Mathews Company...Ch. 20 - Prob. 1ADMCh. 20 - Prob. 2ADMCh. 20 - Apple Inc.: Segment revenue analysis Segment...Ch. 20 - LVMH: Group segment sales and EBITDA analysis LVMH...Ch. 20 - Prob. 20.1TIFCh. 20 - Communication Bon Jager Inc. manufactures and...
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