Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 34

Sales Volume, Sales Quantity, and Sales Mix Variances The Varner Performing Arts Center 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:

	Percentage
	Ticket Price	Budgeted Seats	Actual Seats
Center	$60	80%	95%
Side	50	90	85
Balcony	40	85	75

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 (round the variances to the nearest whole dollar):

1. The budgeted and actual sales mix percentages for different types of seats.

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2. The budgeted average contribution margin per seat.

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3. The total sales quantity variance and the total sales mix variance.

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4. The total sales volume variance.

Step 1 of 4

Sales Volume, Sales Quantity, and Sales Mix Variances (30 min)

1.     Sales Mix

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