Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5]

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat 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 can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

Fixed Cost per MonthCost per CruiseCost per PassengerVessel operating costs$ 6,000$ 472.00$ 3.10Advertising$ 2,400 Administrative costs$ 5,900$ 37.00$ 1.50Insurance$ 3,200

For example, vessel operating costs should be $6,000 per month plus $472.00 per cruise plus $3.10 per passenger. The companys sales should average $31.00 per passenger. In July, the company provided 56 cruises for a total of 3,100 passengers.

Required:

Prepare the companys flexible budget for July. Picture of question

Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5] 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 can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: For example, vessel operating costs should be \\( \\$ 6,000 \\) per month plus \\( \\$ 472.00 \\) per cruise plus \\( \\$ 3.10 \\) per passenger. The company's sales should average \\( \\$ 31.00 \\) per passenger. In July, the company provided 56 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July