Analysing the facts provided, the zoo shows favorable revenuevariances of $30,000 while the expenditure variances are highly unfavorable at.These huge expenditures need to be curbed or revenue needs to be increased for the zoo to remain favourable. Lyons needs to investigate the reasons behind why the zoo has estimated animal food at rates that are lower than market rates. He also needs to assess the reasons behind the lower number of visitors to the zoo.