In: Accounting
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%))
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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 | |||
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The total sales mix variance. (Round your answers to the nearest whole dollar amount.)
Requirement 3A | ||||||||||||||||
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Requirement 3B
he total sales quantity variance. (Round your answers to the nearest whole dollar amount.)
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Requirement 4
The total sales volume variance.
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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 | |