Answer Happy

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 80 passengers car be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month $ 5, 200 Cost per Cruise $ 480.00 Cost per Passenger $ 2.00 Vessel operating costs. Advertising $ 1,700 $ 4,300 $ 24.00 $ 1.00 Administrative costs Insurance $ 2,900 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. In July, the company provided 24 cruises for a total of 1,400 passengers. Required: Prepare the company's flexible budget for July. Answer is not complete. 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 $ 35,000 19,520 1,700 6,276 2,900 30,396 4,604 $