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 86 passengers can be accommodated on the tour boat. Dato concerning the company's cost formulas appear below. Fixed Cost per cost per Cost per Month Cruise Passenger Vessel operating costs $ 6,200 $ 477.00 $ 3.40 Advertising $ 2,600 Administrative costs $ 5,500 $ 35.00 $ 1.50 Insurance $ 3,800 For example, vessel operating costs should be $6,200 per month plus $477.00 per cruise plus $3.40 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 52 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budget for July.
Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Actual passengers Revenue $ $ 100,650 Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense 0 Net operating income $ 100,650