Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the...
90.2K
Verified Solution
Link Copied!
Question
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 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 88 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Cruise $ 473.00 Cost per Passenger $ 3.40 Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,800 $ 2,900 $ 5,400 $ 3,800 $36.00 $1.50 For example, vessel operating costs should be $6,800 per month plus $473.00 per cruise plus $3.40 per passenger. The company's sales should average $29.00 per passenger. In July, the company provided 59 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
