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Question: alyeski tours operates day tours of coastal glaciers in alaska...

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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 82 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below Fixed Cost per Month Cost per Cruise Cost per Passenger 471.00 Vessel operating costs Advertising Administrative costs Insurance 6,700 s2,500 5,600 3,800 s3.30 36.00 1.50 For example, vessel operating costs should be $6,700 per month plus $471.00 per cruise plus $3.30 per passenger. The companys sales should average $33.00 per passenger. In July, the company provided 51 cruises for a total of 3,050 passengers. Required: Prepare the companys flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Actual passengers Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income
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