Enrollment

$5,000$

Tuition per credit hour

$$115$

Credit hours

$80,000$

Registration, records, and marketing costs per enrolled student

$$300$

Instructional costs per credit hour

$$45$

Depreciation on classrooms and equipment

$$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

Line Item Description

Revenue

Variable costs:

Registration, records, and marketing costs $

Instructional costs

Total variable costs

Contribution margin

Amosint

$

$

$.$