$14-23$ Variance analysis, multiple products. The Detroit Penguins play in the American Ice

Hockey League. The Penguins play in the Downtown Arena $($owned and managed by the City of

Detroit$),$ which has a capacity of $15,000$ seats $(5,000$ lower$-$tier seats and $10,000$ upper$-$tier

seats$).$ The Downtown Arena charges the Penguins a per$-$ticket charge for use of its facility. All

tickets are sold by the Reservation Network, which charges the Penguins a reservation fee per

ticket. The Penguins$$ budgeted contribution margin for each type of ticket in $2012$ is computed

as follows:

Lower$-$Tier Tickets Upper$-$Tier Tickets

Selling price

Downtown Arena fee

Reservation Network fee

$$35$

$10$

$5$

$$14$

$6$

$3$

$5$

$6$

Contribution margin per ticket $$20$ $$5$

The budgeted and actual average attendance figures per game in the $2012$ season are as follows:

Budgeted Seats Sold Actual Seats Sold

Lower tier $4,0003,300$

Upper tier $6,0007,700$

Total $10,00011,000$

There was no difference between the budgeted and actual contribution margin for lower$-$tier or

upper tier seats. The manager of the Penguins 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.

$1.$ Compute the sales$-$volume variance for each type of ticket and in total for the Detroit Penguins

in $2012.($Calculate all variances in terms of contribution margins.$)$

$2.$ Compute the sales$-$quantity and sales$-$mix variances for each type of ticket and in total in

$2012.$

$3.$ Present a summary of the variances in requirements $1$ and $2.$ Comment on the results.