Question 2: Revenue Variance and Price variance
Based on the excel sheet it is observed that the number of visitors are well below the budgeted figure of 15,000. The variance between the budgeted number of visitors and actual visitors is 5,000. Thus the projected revenue per ticket at the rate of $ 8 per ticket would come to $ 40,000. Interestingly, the tickets are being sold for $ 10 each. Thus the revenue from sale of tickets comes to $ 100,000 which is still below the budgeted revenue from sale of tickets by $20,000, although this is about half the expected losses if the tickets had been sold as per budgeted figure of $ 8. On the basis of this analysis it is seen that the number of visitors at the zoo has fallen by one-thirds the expected numbers.