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:
Fixed Cost per Month | Cost per Cruise | Cost per Passenger | |||||||
Vessel operating costs | $ | 5,200 | $ | 480.00 | $ | 2.00 | |||
Advertising | $ | 1,700 | |||||||
Administrative costs | $ | 4,300 | $ | 24.00 | $ | 1.00 | |||
Insurance | $ | 2,900 | |||||||
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company’s sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers.
Required:
Prepare the company’s flexible budget for July.
Flexible Budget | ||
Actual Cruises | 24 | |
Actual Passengers | 1400 | |
Revenue | 35000 | =1400*25 |
Expenses: | ||
Vessel operating costs | 19520 | =5200+(24*480)+(1400*2) |
Advertising | 1700 | |
Administrative costs | 6276 | =4300+(24*24)+(1400*1) |
Insurance | 2900 | |
Total expense | 30396 | |
Net Operating income | 4604 |
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue...
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: Fixed Cost...
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 86 passengers can be accommodated on the tour boat. Data
concerning the company’s cost formulas appear below:
Fixed...
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 90 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below: Fixed Cost...
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 82 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below Fixed Cost...
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 84 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below: Fixed Cost...
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 83 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below: Fixed Cost...
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 84 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below Fixed Cost...
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 86 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below. Cost per...
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 87 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: cost per...
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 81 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per...