Essay About Animal Feed And Ticket Sales

Kalamazoo Zoo Case
Kalamazoo ZooKarmen SandersMBA 63207/04/2016Question 1: TotalVariance TypeActual BudgetVariance AmountFavorable/UnfavorableRevenue$850,000$820,000$30,000FavorableExpenditure$1,070,000$820,000$250,000UnfavorableQuestion 2: TicketsRevenue VarianceActual QuantityBudgetedQuantityBudgeted PriceVarianceFavorable/UnfavorableQuantity10,00015,000$8.00$40,000UnfavorableRevenueVarianceActual PriceBudgeted PriceActual QuantityVarianceFavorable/UnfavorablePrice$10$810,000$20,000FavorableQuestion 3: Food/AnimalsExpenditureVarianceActual QuantityBudgetedQuantityBudgeted PriceVarianceFavorable/UnfavorableQuantity120100$240020FavorableExpenditureVarianceActual PriceBudgeted PriceActual QuantityVarianceFavorable/UnfavorablePrice$3000$2400120$72,000UnfavorableQuestion 4:By performing the variances, I can see that the Zoo has had an unfavorable year. Ticket sales were down, however the price per ticket was higher than actually budgeted. What could have been a $40,000 loss is actually a $20,000 loss due to the price increase.There is an unfavorable cost increase to animal feed of $600 per animal and this is most likely do to the good breeding year, an increase of animal population by 20 head, and weird weather for the year. I see this as a favorable cause for the deficit. Yes the cost to feed the additional heads is over budget, however each animal is worth X amount of dollars and should increase their bottom line for assets. They can sell these animals.I do think that for further investigation we need to look into the cost for feed per animal, did something in feed price change or did what the zoo is feeding the animals change? Also, is the zoo going to sell or keep the additional animals born?I also think we need to investigate the ticket price increase as compared to the decline in number of tickets sold. Did the number of tickets sold decline due just to the numerous days the zoo needed to close, or was the decline still higher than that and maybe due to the increase in ticket prices.  We need to know the average number of tickets sold per day, and the amount of days the zoo had to close that it would have normally been open.Question 5:The Mayor has called and said that we need to expect to see $100,000 less for our coming year budget.