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

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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 salings if there is sufficient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below. Cost per Pastor $ 3.10 Vesseltoerating costs Advertising Asinistrative costs Insurance Footer Moth $6.500 12.700 15.900 13.700 Cost per cuise 3 472.00 $ 32.00 11.50 For example, vessel operating costs should be $6,300 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 50 cruises for a total of 3,050 passengers. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance 0 Total expense Net operating income $ $ 0

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