Question
The Eclipse has a capacity of 30,000 seats (10,000 lower-tier seats and 20,000 balcony seats). The Eclipse charges the a per-ticket charge for use of
The Eclipse has a capacity of 30,000 seats (10,000 lower-tier seats and 20,000 balcony seats). The Eclipse charges the a per-ticket charge for use of its facility. All tickets are sold by the Ticket-Run Network, which charges a reservation fee of $5 per ticket. The budgeted average contribution margin for each type of ticket in 2020 is computed as follows:
| Lower Level | Balcony |
Selling Price | $100.00 | $ 50.00 |
Eclipse Fee | 10.00 | 5.00 |
Ticketrun Fee | 5.00 | 5.00 |
Total | 85.00 | 40.00 |
The budgeted and actual average attendance figures per game in the 2020 season are as follows:
| BudgetedSeats | ActualSeats |
Lower Level | 7500 | 7000 |
Balcony | 9000 | 12000 |
The contribution margins remained constant through the year.
The athletics director of the was delighted that actual attendance was above budgeted attendance, especially given the depressed state of the New York City.
Required:
Using contribution margins
1. Compute the sales-volume variance for each type of ticket and in total.
2. Compute the sales-quantity variance for each type of ticket and in total.
3. Compute sales-mix variances for each type of ticket and in total in total.
4. Comment on the results.
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