Question 1 (25 marks) TicketGuru, Inc., is a primary ticket outlet and distribution company in North America. TicketGuru earns a majority of its revenue from primary ticketing and resale ticket services on behalf of its elients. TicketGuru's major costs are royalties paid to clients, te costs associated with its call centre, and commissions paid to music chains and department stores. Its business has improved steadily over the past 10 years. As usual, Rodrcik Kay, the managing partner of T most recent year. cketGuru, Inc., received a report summarizing the performance for the TicketGuru, Inc. Performance Report For the year ended December 31, 20127 Budget Actual Variance Number of tickets sold Variable Expenses Royalties 135 180 45 $84,10508,980 24875) ($24,875) ($19,040) $45,870 (S15,870) Telecommunication $120,962 $30,000 $235,067 $140,002 Commissions Total Fixed Expenses Server maintenance Total Total Expenses 204 852 ($59,785) 510,000 $510,000 $804,852 $500,040 ($9,960) $500,040 $755,107 $804852 75) ($69,745) Required: a) Explain the major weaknesses of the performance report (5 marks) b) Explain clearly why all variances are unfavourable