Question

The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,900 seats: 2,200 center seats, 2,700 side seats, and 3,000 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Percentage Occupied Ticket Budgeted Actual Price Seats Seats $ 90 80% 85% 80 70 75 70 75 65 Center Side Balcony The actual ticket prices were 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: 1. The budgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b. The total sales quantity variance. 4. The total sales volume variance.

Answer 1

Answers * center, O Budgeted sales quantity - total seats x percentage de buclgeted sale = 2,200 x 8001, = 17GO scarls Side side budgeted sales quoortity - total Searts x percentage budgeted Sally = 2.700x 70.4. = 1890 seats balcony budgeted 1-15-14 = 3,000 X 754. = 2250 seert's * center, budgeted sales mix = I Budgeted saley Quantity X 100 total nood sat bergeted - 1760 Xrod 1760 4.1890+8a50 5900 5900 - side = 29183-1. . 1890 bude ted sales mix Noo 5900 552.030,

balcony buckgeted sceles mix = -5900 2250 %100 = 38.14.1 * center Actual sales Quantity Total sales x perccalage of actual salg = 2,200 x 854. = 1870 seats side, Aeteral sales Quality = 2.700x 75%. J = 2025 seats balcony Attual sales Quantity = 3,000 X65. = 1950 seats & centar .. Actual sales mix = Actual sales Quantity _x100 folat no.el actual satisild fi18-107 205+1950 = 58457 1870___ Xtoo : 5845 side. = 31.996/- Actual sales mix = doar 5847 X180 = 34.64.1,

balcony Actual sales mix 31.994 Actual sendes mix = 1950 x 100 = 33.367. 5845 Budgeted sales Budgeted sales | Actual sales I Boty mix afy center | 1760 seats - 29.83). 1870 seats side 1890 seats 2005 seats | balcony aaro seats 38.1401 1950 seats @ buclgeted average contri berfion wagen present 32.034. 34.647 33.3610 :: (1160x90)+ (1990x80)+laa 50x70 ) 5900 - 158400 + 151200 + 157500 5900 467100 5900 = 79.17 i budgeted ang contribution margin per scat= 79, 17] Total sales mis variance, @ -(oleted quantity sold fortal actual qucne frity sold in standardavis) x contribution per seat

Total actual quantity sold in standard Nix 11340 12240 Center – 5845 X 29.834.= 1744 seats side — 584.5 * 32.03%. = 1872 seats balcony - 5845X38.14% = a0a9 seats center Ci870-1944) x 90 side (2025 – 1872) x80 balcony (1950-2229) x 70 -19530 L Tolal 40.50 (favourable) 6 Total sales Quantity variance -Aeteral sales volume in standard mix-beadgated scalley) x contibution per seat -1440 1440 Center (rauy - 1460) x 90 side (1822–1890) 480 balcony (2329 – 2250) * 70 Total ① Total sales volume variance : =lac-taal sabes-budgeted saky ]x contribuition por seate -1470 -43.50 adverse

10.800 center 61890 – 1760 ) xqe 9900 side (2005 – 18902 x 80 balcony (1950-2250) x 70 -a 1000 Gotal - 300 Adverse Also, Tolal sales volume varianc = Total des mix variance . x total sales Quantity Variance = 4050 +64350) =-300 3. Total sales volume variance --300