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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the...

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Accounting

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 84 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

Fixed Cost per Month Cost per Cruise Cost per Passenger

Vessel operating costs $ 6,700 $ 474.00 $ 3.10

Advertising $ 2,300 0 0

Administrative costs $ 5,300 $ 31.00 $ 1.50

Insurance $ 3,700 0 0

For example, vessel operating costs should be $6,700 per month plus $474.00 per cruise plus $3.10 per passenger. The companys sales should average $30.00 per passenger. The companys planning budget for July is based on 53 cruises and 3,200 passengers. Required: Complete the companys planning budget for July.

Revenue

Expenses:

Vessel operating costs

Advertising

Administrative Costs

Insurance

Total Expense

Net Operating Income

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