The Greensboro Performing Arts Center (GPAC) has a total capacity of 9,000 seats: 2,600 center seats, 3,100 side seats, and 3,300 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Ticket Price Percentage Occupied Budgeted Seats Actual Seats Center $ 115 80% 85% Side 105 70 75 Balcony 95 75 65 The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance. Required: Compute the following for the show: 1. The budgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b. The total sales quantity variance. 4. The total sales volume variance.
The Greensboro Performing Arts Center (GPAC) has a total capacity of 9,000 seats: 2,600 center seats, 3,100 side seats, and 3,300 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows: Ticket Price Percentage Occupied Budgeted Seats Actual Seats Center $ 115 80% 85% Side 105 70 75 Balcony 95 75 65 The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance. Required: Compute the following for the show: 1. The budgeted and actual sales mix percentages for different types of seats. 2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin. 3-a. The total sales mix variance. 3-b. The total sales quantity variance. 4. The total sales volume variance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Greensboro Performing Arts Center (GPAC) has a total capacity of 9,000 seats: 2,600 center seats, 3,100 side seats, and 3,300 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows:
| Ticket Price | Percentage Occupied | ||
|---|---|---|---|
| Budgeted Seats | Actual Seats | ||
| Center | $ 115 | 80% | 85% |
| Side | 105 | 70 | 75 |
| Balcony | 95 | 75 | 65 |
The actual ticket prices were the same as those budgeted. Once a show has been booked, the total cost does not vary with the total attendance.
Required:
Compute the following for the show:
1. The budgeted and actual sales mix percentages for different types of seats.
2. The budgeted average contribution margin per seat. Assume the ticket price is also the contribution margin.
3-a. The total sales mix variance.
3-b. The total sales quantity variance.
4. The total sales volume variance.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Explain sales mix
VIEWStep 2: Calculate budgeted and actual sales mix percentages for different types of seats.
VIEWStep 3: Calculate budgeted average contribution margin per seat
VIEWStep 4: Calculate total sales mix variance.
VIEWStep 5: Calculate total sales quantity variance.
VIEWStep 6: Determine total sales volume variance
VIEWSolution
VIEW
Step by step
Solved in 7 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education