Oceanview School, a private high school, is preparing a planned income statement for the coming academic ye ending August 31, 2013. Tuition revenues for the past two years ending August 31 were as follows: 2012, $840, and 2011, $880,000. Total expenses for 2012 were $830,000 and in 2011 were $844,000. No tuition rate chang occurred in 2011 or 2012, nor are any expected to occur in 2013. Tuition revenue is expected to be $830,000 fo 2013 Requirement 1. What net income should be planned for 2013, assuming that the implied cost behavior remains unchanged Let's begin by determining the variable expense percentage. Total revenue 2011 Total expenses 2012 = = Variable expense percentage 4.76 % Now calculate the fixed expenses using data from 2012. Total expenses - Variable expenses = Fixed expenses Now calculate the net income that is planned for 2013 Revenue - Variable expenses - Fixed expenses = Net income