work, Ch 9 Help Alyeski Tours operates day tours of coastal glaciers in Alaska o
ID: 2557322 • Letter: W
Question
work, Ch 9 Help 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 89 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below Vessel operating costs s 6,580 s 2,500 5,8e0 s 3,100 s 479.e0 s 3.10 Administrative costs $39.00 s 1.50 For example, vessel operating costs should be $6.500 per month plus $47900 per cruise plus s310 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 53 cruises for a total of 3100 passengers Required Prepare the company's flexible budget for July. Flexible Budget For the Month Ended July 31 Next > Prey7or 9Explanation / Answer
FLEXIBLE BUDGET FOR JULY: Number of Passengers 3100 Average revenue per passenger 30 Revenue 93000 Expenses: Vessel Operating expense 41497 Advertising 2500 Admin Cost 12517 Insurance 3100 Total Expense 59614 Net Operating Income 33386
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