East Side Theatre (EST) recently completed its 2006-2007 season. Due to popular demand EST performed a total of 180 shows, 20 more than originally budgeted. EST had expected the average attendance for each show to be 450; but much to their delight each performance had an average of 500 attendees. Nevertheless, while EST had projected an original budget of $8,280,000, it actually ended the season with only $8,100,000. Calculate the total, volume, quantity and price variances for EST. State whether each is favorable or unfavorable. Hint: Compute budgeted and actual price from the information above. (10)

Briefly explain to ESTs Artistic Director what each of the variances means to EST and why the theatre company ended the season with less revenue than expected. (5)