E14-25 (similar to) Question Help The Chicago Ravens play in the American Ice Hockey League. (Click the icon to view the additional information.) The budgeted and actual average attendance figures per game in the 2017 season are as follows: (Click the icon to view the budgeted and actual average attendance figures.) There was no difference between the budgeted and actual contribution margin for lower-tier or upper-tier seats. The manager of the Ravens was delighted that actual attendance was 20% above budgeted attendance per game, especially given the depressed state of the local economy in the past six months. Read the requirements. Requirement 1. Compute the sales-volume variance for each type of ticket and in total for the Chicago Ravens in 2017. (Calculate all variances in terms of contribution margins.) Determine the formula for sales-volume variance, then compute the sales-volume variance for each type of ticket and in total for the Chicago Ravens in 2017. (Calculate all variances in terms of contribution margins.) Label each variance as favorable (F) or unfavorable (U). (Enter all variances as positive numbers. Abbreviation used: qty = quantity.) Sales-volume variance The Ravens play in the Downtown Arena, which is owned and managed by the City of Chicago. The arena has a capacity of 15,000 seats (5,500 lower-tier seats and 9,500 upper-tier seats). The arena charges the Ravens a per-ticket charge for use of its facility. All tickets are sold by the Reservation Network, which charges the Ravens a reservation fee per ticket. The Ravens' budgeted contribution margin for each type of ticket in 2017 is computed as follows: Lower-Tier Tickets Upper-Tier Tickets Selling price Downtown Arena fee Reservation Network fee Contribution margin per ticket Budgeted Seats Sold Lower tier 4,500 5,500 Actual Seats Sold 4,200 7,800 Upper tier 10,000 12,000 Total 1. Compute the sales-volume variance for each type of ticket and in total for the Chicago Ravens in 2017. (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 2017 3. Comment on the variance results from requirements 1 and 2