5Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two costdrivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The companypublishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85 passengers canbe accommodated on the tour boat. Data concerning the company's cost formulas appear below:ts-BookHintVessel operating costsAdvertisingAdministrative costsInsuranceFixedCost per cost per cost perMonthCruise Passenger$ 3.20$ 6,300 $ 473.00$ 2,700$ 33.00$ 5,600$ 3,600For example, vessel operating costs should be $6,300 per month plus $473.00 per cruite plus $3.20 per passengec The company'ssales should average $33,00 per passenger. In July, the company provided 52 cruises for a total of 3.150 passengers.Required:Prepare the company's flexible budget for JulyAlyeski ToursFlexible BudgetFor the Month Ended July 31$ 1.50

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Description: 5Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two costdrivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. Th

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5 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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Cost per cost per Month Passenger $ 3.20 Cruise $ 6,300 $ 473.00 $33.00 $ 1.50 $ 2,700 $ 5,600 $ 3,000 For example, vessel operating costs should be $6,300 per month plus $473.00 per crui plus $3.20 per passenger The company's sales should average $33,00 per passenger. In July, the company provided 52 cruises for a total of 3.150 passengers Required: Prepare the company's flexible budget for July Alyeski Tours Flexible Budget For the Month Ended July 31

5 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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Cost per cost per Month Passenger $ 3.20 Cruise $ 6,300 $ 473.00 $33.00 $ 1.50 $ 2,700 $ 5,600 $ 3,000 For example, vessel operating costs should be $6,300 per month plus $473.00 per crui plus $3.20 per passenger The company's sales should average $33,00 per passenger. In July, the company provided 52 cruises for a total of 3.150 passengers Required: Prepare the company's flexible budget for July Alyeski Tours Flexible Budget For the Month Ended July 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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