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Problem - 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 cost per enrolled student
$275
Instructional costs per credit hour
$64
$60
Depreciation on classrooms and equipment
$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.
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