American Ice Hockey League Assignment

The Chicago Wolves play in the American Ice Hockey League.

The budgeted and actual average attendance figures per game in the 2017 season are as​ follows:

Top Universities
Budgeted Seats Sold Actual Seats Sold

Lower tier 3,000 4,200

Upper tier 7,000 7,800

Total 10,000 12,000

The Wolves play in the Downtown​ Arena, which is owned and managed by the City of Chicago. The arena has a capacity of 15,000 seats ​(4,000 ​lower-tier seats and 11,000 ​upper-tier seats). The arena charges the Wolves a​ per-ticket charge for use of its facility. All tickets are sold by the Reservation​ Network, which charges the Wolves a reservation fee per ticket. The Wolves​' budgeted contribution margin for each type of ticket in 2017 is computed as​ follows:

Lower-Tier Tickets

Upper-Tier Tickets

Selling price



Downtown Arena fee



Reservation Network fee



Contribution margin per ticket



There was no difference between the budgeted and actual contribution margin for​ lower-tier or​ upper-tier seats. The manager of the Wolves was delighted that actual attendance was 20​% above budgeted attendance per​ game, especially given the depressed state of the local economy in the past six months.

1.Compute the​ sales-volume variance for each type of ticket and in total for the Chicago Wolves in 2017. ​(Calculate all variances in terms of contribution​ margins.)

Determine the formula for​ sales-volume variance, then compute the​ sales-volume variance for each type of ticket and in total for the Chicago Wolves in 2017. ​(Calculate all variances in terms of contribution margins ​.) Label each variance as favorable​ (F) or unfavorable left parenthesis Upper U right parenthesis. ​(Enter all variances as positive numbers. Abbreviation​ used: qty​ = quantity.)

2.Compute the​ sales-quantity and​ sales-mix variances for each type of ticket and in total in 2017.

3.Comment on the variance results from requirements 1 and 2.

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