W5Chapters14_15 - Lydia Holmes Exercise 14-23 Lower tier...

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Lydia Holmes Exercise 14-23 Lower tier seats 5,000 Selling Price Upper tier seats 10,000 Downtown Arena Fee Seats available 15,000 Reservation Network Fee Contribution Margin per Ticket 1. Compute the sales volume variance for each type of ticket and in total (calculate Budget Data Lower Tier $35 $15 $20 4,000 Upper Tier $14 $9 $5 6,000 Total 10,000 Acutal Results Lower Tier $35 $15 $20 3,300 Upper Tier $14 $9 $5 7,700 Total 11,000 Flexible Budget Lower Tier $66,000 $66,000 Upper Tier $38,500 $38,500 $104,500 $104,500 2. Compute the sales quantity and sales mix variances for each type of ticket and in Sales Volume Variance Analysis Sales mix variance Lower Tier $66,000 $22,000 U Upper Tier $38,500 $5,500 F TOTAL $104,500 $16,500 U 3. Present a summary of the variances in requirements 1 and 2. Comment on the re Selling price/ unit Variable cost/unit Contribution margin/unit Sales volume/units Selling price/ unit Variable cost/unit Contribution margin/unit Sales volume/units 1. Sales Volume Variance Analysis Actual Results Flexible budget
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Sales mix variance Lower Tier $14,000 U $22,000 U Upper Tier $8,500 F $5,500 F TOTAL $5,500 U $16,500 U While the Penguins did have an actual attendance 10% above wha the upper tier where the cheaper seats are. They undersold on mix variance as well as the sales volume variance was unfavora expected in the upper tier, by 1700 tickets, the results were favo Sales- Volume Variance
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$35 $14 Lower Tier 10 6 Upper Tier 5 3 Total $20 $5 e all variances in terms of margins). 40% $80,000 60% $30,000 100% $110,000 30% $66,000 70% $38,500 100% $104,500 $14,000 U $80,000 $8,500 F $30,000 $5,500 U $110,000 n total. $88,000 $8,000 F $80,000 $33,000 $3,000 F $30,000 $121,000 $11,000 F $110,000 esults. Lower-Tier Tickets Upper-Tier Tickets Sales mix (units) Contribution margin Sales mix (units) Contribution margin Sales-Volume Variance Static Budget Actual units sold Sales quantity variance Static budget
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$8,000 F $3,000 F $11,000 F t was budgeted, the excess sales were primarily on the lower tier by about 700 seats, thus their Sales able. But as stated, because sales were better than rable for all three categories. Sales quantity variance
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4,000 3,300 6,000 7,700 10,000 11,000 Budgeted Seats Sold Actual Seats Sold
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Lydia Holmes Exercise 15-16 Rockford 10,000 Peoria 20,000 Hammond 12,000 Kankakee 8,000 Total 50,000 1. Single cost pool. What budgeted amounts will be allocated to each ma
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W5Chapters14_15 - Lydia Holmes Exercise 14-23 Lower tier...

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