Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 19

Sales Volume, Sales Quantity, and Sales Mix Variances The Greensboro Performing Arts Center (GPAC) has a total capacity of 7,500 seats: 2,000 center seats, 2,500 side seats, and 3,000 balcony seats. The budgeted and actual tickets sold for a Broadway musical show are as follows:

The actual ticket prices are 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 (calculate mix percentage and unit contribution margin to four decimal places and round the variances to the nearest whole dollar):
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. The total sales quantity variance and the total sales mix variance.
4. The total sales volume variance.