Variable Costing Income Statement for a Service Company

The actual and planned data for Underwater University for the Fall term were as follows:

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.

Underwater University

Variable Costing Income Statement

For the Fall Term