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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 89 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 $ 6,600 $ 474.00 $ 3.00
Advertising $ 2,500
Administrative costs $ 5,700 $ 36.00 $ 1.50
Insurance $ 3,700
For example, vessel operating costs should be $6,600 per month plus $474.00 per cruise plus $3.00 per passenger. The companys sales should average $35.00 per passenger. In July, the company provided 53 cruises for a total of 3,150 passengers.
Required:
Prepare the companys flexible budget for July.

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