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The Groundhogs are a professional soccer team. The team sells two types of tickets: deluxe and upper level. All costs are fixed. Sales data
The Groundhogs are a professional soccer team. The team sells two types of tickets: deluxe and upper level. All costs are fixed. Sales data is as follows: Sales BUDGET: (S/seat) Sales (seats) Sales (total $) ACTUAL: Sales (S/seat) (seats) Sales Sales (total $) $ S Deluxe 100.00 1,800 $ 180,000 Deluxe $ 89.99 2,100 188.979 upper level 20.00 5,700 114,000 upper level 19.50 6,300 122,850 S Total 7,500 $ 294,000 Total 8,400 311.829 Required (2 marks each): A. Calculate the Sales Mix variances for each product (in terms of Contribution Margin). B. Calculate the Sales Quantity Variance for each product (in terms of Contribution Margin). C. Calculate the Sales Volume Variance for each product (in terms of Contribution Margin). D. The sales manager has asked for a bonus based on the increase in total sales dollars. Not including the variances discussed in parts A, B and C of this question, name the variance(s) you would want to examine before granting a bonus, and briefly explain what these variances tell us.
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