The Varner Performing Arts Center has a total capacity of 7,500 seats: 2,000 center seats, 2,500 side
Question:
The Varner Performing Arts Center has a total capacity of 7,500 seats: 2,000 center seats, 2,500 side seats, and 3,000 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows:
| Number of seats available: | ||||
| Center | 2000 | |||
| Side | 2500 | |||
| Balcony | 3000 | |||
| Ticket | Percentages | |||
| Price | Budget | Actual Seats | ||
| Center | $60 | 80% | 95% | |
| Side | 50 | 90% | 85% | |
| Balcony | 40 | 85% | 75% | |
The actual ticket prices are the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance.
Required
Compute the following for the show (round the variances to the nearest whole dollar):
1. The budgeted and actual sales mix percentages for different types of seats.
2. The budgeted average contribution margin per seat.
3. The total sales quantity variance and the total sales mix variance.
4. The total sales volumevariance.
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Step by Step Answer:
1 Budgeted Sales Actual Sales Seats Quantity Mix Quantity Mix Center 2000 80 1600 250000 95 1900 302...View the full answer
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
