Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposesthe number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficlent demand. Up to passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below:
For example, vessel operating costs should be $ per month plus $ per cruise plus $ per passenger. The company's sales should average $ per passenger. In July, the company provided cruises for a total of passengers.
Required:
Prepare the company's flexible budget for July.
tableAlyeski Tours,Forible Budget,RevenueExpenses:Vessel operating costs,AdvertisingAdministrative costs,InsuranceTotal expenses,Net operating income,
