The actual and planned data for Open University for the Fall term 2010 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 2010 term.
b. Prepare a contribution margin analysis report comparing planned with actual performance for the Fall 2010term.

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Actual Planned 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 7,520 $200 100,800 $464 $106 51,378,000 6,880 $224 72,000 $464 $100 $1,376,000