ezto.mheducation.com value 1.00 points Alyeski Tours operates day tours of coast

Question

ezto.mheducation.com value 1.00 points Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identfied 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 aruises that it may supplement with special salings if there is sufficient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below Foxed Cost Cost Vessel operating costs 6,300 $480.00 $3.30 5 2,700 Administrative costs Insurance 5,900 33.00 $1.50 3,100 For example, vessel operating costs should be $8.300 par month plus $480.00 per cruise plus $3.30 per passenger. The company's sales should average $29.00 per passenger. The company's planning budget July is based on 53 cruises and 3,150 passengers Required: Complete the oompany's planning budget for July Alyeski Tours Planning Budget For the Month Ended July 31 Revenue S 91350 Vessel operating costs 2.700 Total expense Net operaling income 5.800 85,550 esc

Explanation / Answer

Alyeski Tours & travels Planing Budget For the month Ended July31 Revnue $91,350 Expense Vessel operating Cost $42,135 Advertising $2,700 Adminstrative Cost $12,374 Insurance $3,100 Total Expense $60,309 Net Operating Income $31,041 W/Note-1: Computation of Veessel operating Cost Particular Per Cruise /Passenger No. of Cruise /Passenger Total Cost Variable Cost   ( Per Cruise) $480.00 53 $25,440 Variable Cost   ( Per Passenger) $3.30 3150 $10,395 Monthly Fixed Cost $6,300 Total Cost $42,135 W/Note-2: Computation of Administrative Cost Particular Per Cruise /Passenger No. of Cruise /Passenger Total Cost Variable Cost   ( Per Cruise) $33.00 53 $1,749 Variable Cost   ( Per Passenger) $1.50 3150 $4,725 Monthly Fixed Cost $5,900 Total Cost $12,374

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