BCS University provides you with the following data regarding its football program for the most recent season (note: this data omits revenues from concessions, apparel, etc.)
....................................................Master Budget................... Actual Result
Sales (# of seats for the season)........................ 480,000......................... 500,000
Average ticket price per seat.............................. $60.00.......................... $62.00
Variable cost per seat ........................................$3.00........................... $3.20
Fixed costs (salaries and facilities, etc.)........... $12,000,000................... $12,250,000
Required:
a. What is BCS University's total profit variance for football?
b. What is BCS University's football sales volume variance?
c. What is BCS University's football sales price variance?
d. Briefly discuss why, for BCS University, the total profit variance does not equal the sum of the sales revenue and sales price variances.