EX$21-18$

Variable Costing Income Statement for a Service Company

The actual and planned data for Broadwater Institute

EX$21-18$

Variable Costing Income Statement for a Service Company

The actual and planned data for Broadwater Institute

EX$21-18$

Variable Costing Income Statement for a Service Company

The actual and planned data for Broadwater Institute & Technical School for the Fall term were as follows:

$\backslash$table$[[,$Actual$],[$Enrollment$,5,000],[$Tuition per credit hour,$$115],[$Credit hours,$80,000],[$Registration$,$ records, and marketing cost per enrolled student,$$300],[$Instructional costs per credit hour,$45],[$Depreciation on classrooms and equipment,$$1,875,0]]$

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.

Broadwater Institute & Technical School

Variable Costing Income Statement

For the Fall Semester

$\backslash$table$[[$Revenue:$,,],[$Variable Costs:,,$],[$Registration$,$ records, and marketing Costs,,$],[$Instructional Costs,,$],[$Total Variable Costs,,$],[$Contribution Margin,,$],[$Fixed costs,,$],[$Depreciation Expense,,$],[$Operating Income,,$]]$