Prepare a columnar summary of performance for Parks Canada
Not what you're looking for?
Parks Canada prepared the following budget for one of its national parks for 2002:
Revenue from fees $5,000,000
Variable costs (miscellaneous) 500,000
Contribution margin $4,500,000
Fixed costs (miscellaneous) 4,500,000
Operating income $ 0
The fees were based on an average of 50,000 vehicle-admission days (vehicles multiplied by number of days in the park) per week for the 20-week session, multiplied by average entry and other fees of $5 per vehicle-admission day.
The season was booming for the first four weeks. However, there were major forest fires during the fifth week. A large percentage of the park was scarred by the fires. As a result, the number of visitors dropped sharply during the remainder of the season.
Total revenue fell $1 million short of the original budget. Moreover, extra firefighters had to be hired at a cost of $360,000. The latter was regarded as a fixed cost.
Prepare a columnar summary of performance, showing the original (static) budget, sales volume variances, flexible-budget variances, and actual results.
Purchase this Solution
Solution Summary
In an Excel format, the response presents the original budget, sales volume variances, flexible budget variances and actual results.
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.