EX 20-22 Variable costing income statement and contribution margin analysis for a service company

The actual and planned data for Underwater University for the Fall Term 2016 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 cost 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, whole 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 income from operations for the fall 2016 term.

Prepare a contribution margin analysis report comparing planned with actual performance for the fall 2016 term.