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 $ Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs $ Contribution margin $ Depreciation on classrooms and equipment Operating income $

Underwater University Variable Costing Income Statement For the Fall Term:

                                                   Actual          Planned          Variance

Number of Enrollment               4,500              4,125            375

Credit hours                              60,450            43,200         17,250

Revenue                                 $7,254,000     $5,832,000     $1,422,000

Variable costs:

Registration, records,

 & marketing costs               $1, 237,500        $1,134,375         $103,125

Instructional costs                   3,868,800        2,592,000       1,276,800

Total variable costs              $5,106,300      $3,726,375    $1,379,925

Contribution margin              $2,147,700       $2,105,625         $42,075

Depreciation on classrooms

       & equipment                   $825,600         $825,600           $0

Operating income                 $1,322,100      $1,280,025         $42,075

Explanation:

Variable costing income statement is an income statement which shows the contribution that revenue makes in paying for the fixed costs, before arriving at the Operating Income.  In variable costing, there is a separation of variable costs from periodic or fixed costs.  All direct materials, labor, and variable overheads are charged to the variable costs, while fixed costs are expensed to the period for which they are incurred.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi