Lower-Tier Tickets Upper-Tier Tickets $18 Selling price $33 Downtown Arena fee 6 Reservation Network fee Contribution margin per ticket $20 The budgeted and actual average attendance figures per game in the 2017 season are as follows: Budgeted Seats Sold Actual Seats Sold Lower tier 3,300 4,500 Upper tier 7,700 5,500 Total 10,000 11,000 There was no difference between the budgeted and actual contribution margin for lower-tier or upper-tier seats. The manager of the Tigers was delighted that actual attendance was 10% above budgeted attendance per game, especially given the depressed state of the local economy in the past six months. Compute the sales-volume variance for each type of ticket and in total for the Chicago Tigers in 2017. (Calculate all variances in terms of contribution margins.) Compute the sales-quantity and sales-mix variances for each type of ticket and in total in 2017. Present a summary of the variances in requirements 1 and 2. Comment on the results. 1. Required 2. 3.
Lower-Tier Tickets Upper-Tier Tickets $18 Selling price $33 Downtown Arena fee 6 Reservation Network fee Contribution margin per ticket $20 The budgeted and actual average attendance figures per game in the 2017 season are as follows: Budgeted Seats Sold Actual Seats Sold Lower tier 3,300 4,500 Upper tier 7,700 5,500 Total 10,000 11,000 There was no difference between the budgeted and actual contribution margin for lower-tier or upper-tier seats. The manager of the Tigers was delighted that actual attendance was 10% above budgeted attendance per game, especially given the depressed state of the local economy in the past six months. Compute the sales-volume variance for each type of ticket and in total for the Chicago Tigers in 2017. (Calculate all variances in terms of contribution margins.) Compute the sales-quantity and sales-mix variances for each type of ticket and in total in 2017. Present a summary of the variances in requirements 1 and 2. Comment on the results. 1. Required 2. 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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