Parks Canada prepared the following budget for one of its national parks
for 2006:

The fees were based on an average of 50,000 vehicle-admission days (vehicles
multiplied by number of days in park) per week for the 20-week session,
multiplied by average entry and other fees of $10 per vehicle-admission day.
The season was booming for the first four weeks. However, there were
major forest fires during the fifth week. A large percentage of the park was
scarred by the fires. As a result, the number of visitors dropped sharply during
the remainder of the season.
Total revenue fell $1 million short of the original budget. Moreover, extra
firefighters had to be hired at a cost of $360,000. The latter was regarded as a
fixed cost.

Prepare a columnar summary of performance, showing the original (static)
budget, sales volume variances, flexible budget, flexible-budget variances, and
actual results.

Transcribed Image Text:

Revenue from fees $5,000,000 Variable costs (miscellaneous) 500,000 Contribution margin $4,500,000 Fixed costs (miscellaneous) 4,500,000 Operating income 0