Section 4: COST BEHAVIOUR- FLEXED BUDGETS The following scenario relates to Questions 31 - 36 The following information is available to Arena Events Ltd who are preparing their budget for 2021: 1. The average sales price for 2021 will be 30 per ticket for an event. 2. 100% event occupancy is set at 48,000 seats (tickets) per annum 3. Event staff variable costs would be 9.50 per ticket. 4. Variable overheads would be 3.50 per ticket-these are the costs of hospitality welcome packs including a free meal and drink. s. The relationship between semi variable costs and number of tickets sold will be consistent with that over the last 6 years: Yearly direct laboursemi variable Tickets Costs. (E) 2015 32,000 40,000 2016 30,000 38,000 2017 42,000 41,000 2018 39,000 39,500 2019 41,000 40,500 2020 43,000 43,200 6. Fixed costs for the 2021 year are expected to be:- E Depreciation 120,000 Maintenance 12,000 Insurance 42,000 Site Cleaning 150,000 Office Salaries 145,000 Tp. to answer this question you need to: Prepare a flexible budget for 2021 showing the variable, semi variable, found overheads and budgeted profit (loss)of Arena Events Ltd, at activity levels of 100% and 80% Question 34 (3 points) On the flexed budget of 100% event occupancy what are the total variable costs (excluding any semi variable)? 624000 984000 456000 560000