lyeaski Tours operates daey tours of coastal glaciers in Alaska on its tour boat

Question

lyeaski Tours operates daey tours of coastal glaciers in Alaska on its tour boat the Blue Gilacier. Management has ldentied twro cost drivery-the number of cruises and the number of t uses in its budgeting and performance reports. The company publishes a schedule of day cruises that t many supplement with special salings if there is sufficient demand. Up to 80 $ 1,700 4,300 S 24.00 $1.00 2900 For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's pianning budget for July is based on 24 cruises and 1,400 passengers Complete the company's planning budget for July Planning Budget ,3 888 a

Explanation / Answer

Alyeski Tours Planning Budget For the Month Ended July 31 Revenue $        35,000 Expenses Vessel operating Costs $        19,520 Advertising $          1,700 Administrative Costs $          6,276 Insurance $          2,900 Total Expense $        30,396 Net operating Income $          4,604 Budgeted Cruises 24 Budgeted passengers 1400 Revenue ($25 x 1400) $        35,000 Vessel Operating Costs ( $5,200 + ($480 x 24) + ($2 x 1400)) $        19,520 Administrative Costs ($4,300 + ($24 x 24) + ($1 x 1400)) $          6,276

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