value 20.00 points Alyeski Tours operates day tours of coastal glaciers in Alask

Question

value 20.00 points 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 83 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below Fixed Cost Cost per Cost per Per Month Cruise Passenger 6,100 $479.00 3.10 Vessel operating costs Advertising Administrative costs Insurance 2,500 5,700 $ 39.00 1.50 $ 3,300 For example, vessel operating costs should be $6,100 per month plus $479.00 per cruise plus $3.10 per nger. The company's sales should average $29.00 per passenger. The company's planning budget for July is based on 58 cruises and 3,200 passengers Required: Complete the company's planning budget for July Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income Hints References eBook&Resources; Hint#1 O Type here to search

Explanation / Answer

Planning budget :

Revenue (3200*29) 92800 Expenses : Vessel operating costs 43802 Advertising 2500 Administrative cost 12762 Insurance 3300 Total expense 62364 Net operating income 30436

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