PLEASE answer all of the following, thank you!

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
Depreciation on classrooms and equipment	$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.

Underwater University
Variable Costing Income Statement
For the Fall Term
Revenue	$
Variable costs:
Registration, records, and marketing cost	$
Instructional costs
Total variable costs	$
Contribution margin	$
Depreciation on classrooms and equipment
Income from operations	$

b. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall term. If an amount is zero, enter "0".

Underwater University
Contribution Margin Analysis
For the Fall Term
Planned contribution margin		$
Effect of change in revenue:
Revenue quantity factor	$
Unit price factor
Total effect of change in revenue
Effect of changes in registration, records, and marketing costs:
Variable cost quantity factor	$
Unit cost factor
Total effect of changes in registration, records, and marketing costs
Effect of changes in instructional costs:
Variable cost quantity factor	$
Unit cost factor
Total effect of changes in instructional cost
Actual contribution margin		$

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses.

Time Warner, Inc. Segment Revenues (in millions)
Turner (cable networks and digital media)	$66,900
Home Box Office (pay television)	31,500
Warner Bros. (films, television, and videos)	33,100

Assume that the variable costs as a percent of sales for each segment are as follows:

Turner	42%
Home Box Office	31%
Warner Bros.	33%

a. Determine the contribution margin and contribution margin ratio for each segment from the information given. Round contribution margin ratio to whole percents for each segment from the information given. Enter all amounts as positive numbers.

	Turner		Home Box Office		Warner Bros.
Revenues	$		$		$
Variable costs
Contribution margin	$		$		$
Contribution margin ratio (as a percent)		%		%		%

b. Does your answer to (b) mean that the other segments are more profitable businesses?

The higher contribution margin ratio of a segment should not be interpreted as being the profitable segment. If the volume of business is not sufficient to exceed the break-even point, then the segments would be . In the final analysis, the fixed costs also should be considered in determining the overall profitability of the segments. The shows how sensitive the profit will be to changes in volume.

Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 25,000 additional Sun Sound and 33,000 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows:

1

Sun Sound Headphones

Ear Bling Headphones

2

Sales price

$130.00

$145.00

3

Variable cost of goods sold

73.40

70.00

4

Manufacturing margin

$56.60

$75.00

5

Variable selling and administrative expenses

24.00

28.00

6

Contribution margin

$32.60

$47.00

7

Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:

1		Atlantic Wave	Pacific Pounder
2	Sales price	$302.00	$152.00
3	Variable cost of goods sold per unit	113.00	57.00
4	Manufacturing margin per unit	$189.00	$95.00
5	Variable selling expense per unit	162.00	76.00
6	Contribution margin per unit	$27.00	$19.00

The sales unit volume for the sales territories and products for the period is as follows:

	East Coast	West Coast
Atlantic Wave	20,000	5,000
Pacific Pounder	0	5,000

a.	Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
b.	What advice would you give to the management of Coast to Coast Surfbo

Fixed manufacturing costs

14.00

10.00

8

Income from operations

$18.60

$37.00

Prepare an analysis indicating the increase or decrease in total profitability if 25,000 additional Sun Sound and 33,000 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for the additional production. Round your per-unit answers to two decimal places.