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. A scenario analysis would be ideal to determine the most suitable course of action.
Lyons needs to investigate the reasons behind why the zoo has estimated animal food at rates that are lower than market rates. Discussions with the finance department is needed to know why the food prices are skewed. The discussions should detail the procedure for estimating food costs, a major expense at the zoo; while ensuring that steps are taken to so that this glaring miscalculation in budgeting does not reoccur in future budgets.
He also needs to assess the reasons behind the lower number of visitors to the zoo. An online market survey will help identify reasons behind fall in visitors. Since the survey is online, the cost of data collection is minimal. He should hire a professional agency for tabulation and analysis.