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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
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.
Line Item Description | Amount |
---|---|
Revenue | $Revenue |
Variable costs: | |
Registration, records, and marketing costs | $Registration, records, and marketing costs |
Instructional costs | Instructional costs |
Total variable costs | $Total variable costs |
Contribution margin | $Contribution margin |
Depreciation on classrooms and equipment | Depreciation on classrooms and equipment |
Operating income | $Operating income |
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