Variable Costing Income Statement for a Service Company

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 costs 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.

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
Revenue	$fill in the blank 1
Variable costs:
Registration, records, and marketing costs	$fill in the blank 2
Instructional costs	fill in the blank 3
Total variable costs	$fill in the blank 4
Contribution margin	$fill in the blank 5
Depreciation on classrooms and equipment	fill in the blank 6
Operating income	$fill in the blank 7