The actual and planned data for Underwater University for the Fall term 2016 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.
a. Prepare a variable costing income statement showing the contribution margin and income from operations for the Fall 2016 term.
b. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall 2016 term

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Enrollment Tuition per credit hour Credit hours Registration, records, and marketing cost per enrolled student Instructional costs per credit hour Depreciation on classrooms and equipment ActPlanned 4,125 $135 43,200 $275 $60 $825,600 $825,600 4,500 $120 $275 $64