Question

In: Accounting

The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,800 seats: 2,100 center seats,...

The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,800 seats: 2,100 center seats, 2,600 side seats, and 3,100 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows:

			Percentage Occupied
	Ticket Price		Budgeted Seats			Actual Seats
Center	$	80		90	%		95	%
Side		70		80			85
Balcony		60		85			75

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.

Requirement 1

The budgeted and actual sales mix percentages for different types of seats. (Round your answers to 4 decimal places. (i.e. .123456 = 12.3456%))

	Budgeted Sales Mix		Actual Sales Mix
Center		%		%
Side		%		%
Balcony		%		%

The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. (Round your answer to 2 decimal places.)

Requirement 2

What is the Budgeted average contribution margin per seat

The total sales mix variance. (Round your answers to the nearest whole dollar amount.)

Requirement 3A

	Sales Mix Variance
Center
Side
Balcony
Total

Requirement 3B

he total sales quantity variance. (Round your answers to the nearest whole dollar amount.)

	Sales Quantity Variance
Center
Side
Balcony
Total

Requirement 4

The total sales volume variance.

	Sales Volume Variance
Center
Side
Balcony
Total

Expert Solution

Requirement 1
The budgeted and actual sales mix percentages for different types of seats. (Round your answers to 4 decimal places. (i.e. .123456 = 12.3456%))
	Capacity (seats)	Budgeted Seats	Budgeted Sales Mix	Actual Seats	Actual Sales Mix
Center	2100	1890	28.6147%	1995	30.5513%
Side	2600	2080	31.4913%	2210	33.8438%
Balcony	3100	2635	39.8940%	2325	35.6049%
Total	7800	6605		6530
Requirement 2
The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. (Round your answer to 2 decimal places.)
What is the Budgeted average contribution margin per seat
Budgeted Avg. Contribution margin per seat = (Budgeted Sales x Ticket Price) / Total No. of Seats
Budgeted Avg. Contribution margin per seat = ((1890$80) + (2080$70) + (2635*$60)) / 7800	$ 58.32

3) The total sales mix variance. (Round your answers to the nearest whole dollar amount.)
Requirement 3A
Total Sales mix Variance = (Actual Quantity sold - Total Actual Quantity sold in Standard mix) x Contribution per seat
	A	B	C	(A - B ) x C
	Actual Seats	Total Actual Quantity sold in Standard mix =6530 x Budgeted Sales Mix	Contribution per seat	Sales Mix Variance
Center	1995	1868.54	$ 80.00	$ 10,117	F
Side	2210	2056.38	$ 70.00	$ 10,753	F
Balcony	2325	2605.08	$ 60.00	$ (16,805)	U
Total	6530	$ 6,530.00		$ 4,065	F

Requirement 3B
The total sales quantity variance. (Round your answers to the nearest whole dollar amount.)
Total Sales Quantity Variance = (Actual Sales Volume in Standard mix - Budgeted Sales) *Contribution per seat
	A	B	C	(A - B ) x C
	Total Actual Quantity sold in Standard mix =6530 x Budgeted Sales Mix	Budgeted Seats	Contribution per seat	Sales Quantity Variance
Center	1868.54	1890	$ 80.00	$ (1,717)	U
Side	2056.38	2080	$ 70.00	$ (1,653)	U
Balcony	2605.08	2635	$ 60.00	$ (1,795)	U
Total	6530.00	6605.00		$ (5,165)	U

Requirement 4
Total Sales Volume Variance = (Actual Sales - Budgeted Sales) * Contribution Per Seat	A	B	C	(A - B ) x C
	Actual Sales	Budgeted Sales	Contribution per seat	Sales Volume Variance
Center	1995	1890	$ 80.00	$ 8,400.00	F
Side	2210	2080	$ 70.00	$ 9,100.00	F
Balcony	2325	2635	$ 60.00	$ (18,600.00)	U
Total	6530.00	6605.00		$ (1,100.00)	U

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