Alyeski iours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management nas 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 82 passengers canbe accommodated on the tour boat. Data concerning the company's cost formulas appear below:Cost per Cost perPassenger$ 3.00Fixed Costper MonthVessel operating costs$ 6,300Cruise$ 475.00Advertising$ 2,700Administrative costsInsurance$ 5,700$ 3,300$ 31.00$ 1.50For example, vessel operating costs should be $6,300 per month plus $475.00 per cruise plus $3.00 per passenger. The company'ssales should average $31.00 per passenger. In July, the company provided 54 cruises for a total of 3,150 passengers.Required:Prepare the company's flexible budget for July.Alyeski ToursFlexible BudgetFor the Month Ended July 31RevenueExpenses:Vessel operating costsAdvertisingAdministrative costsInsurance

Step 1:The flexible budget for July is presented hereunder:…

Answered: Alyeski iours operates day tours of…

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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The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,800 for 1,200 inspections to $3,800 for 700 inspections. Read the requirements. Requirement 1. Use the high-low method to calculate the variable cost per inspection. Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) Requirements 1. Use the high-low method to calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate the operating costs for 800 inspections. 4. Draw a graph illustrating your total cost under this plan. Show the costs at 700, 800, and 1,200 inspections. (Use the high-low method for all calculations.)
Benson Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 5,000 and 11,000 trophies per year. The following cost data apply to various activity levels. Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round your intermediate calculations and per unit amounts to 2 decimal places.)
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 Month $6,600 $2,200 $5,900 $3,100 Required: Complete the company's planning budget for July. For example, vessel operating costs should be S6,600 per month plus $471.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,150 passengers. Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel…
Make or-Buy Dečision for a Service Company The Theater Arts Guld of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service quoting a price of $17 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $190,700 Benefits 43,400 Supplies 23,100 Office expenses 28,900 Office depreciation 26,000 Computer depreciation 17,300 Total $329,400 The department expects to lay out 17,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, If the department's function were purchased from the outside. a. Prepare a differential analysis dated February 22 to determine whether TAG-D should lay out…
WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year (= 350 days × 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultant’s report shows the following: Activity Activity Measure (cost driver) Unit Cost (cost per unit of activity) Flying and maintaining aircraft Number of flights $ 1,800 per flight Serving passengers Number of passengers $ 5 per passenger Advertising and marketing Number of promotions $ 53,000 per promotion WSM estimates the following annual information. With 16 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $235. The lease of the 60-seat aircraft will cost $4,600,000. Other equipment costs will be $2,300,000. Administrative and other marketing costs will be $1,250,000. Required: a. What…
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you have to create your own product to be sold , list of variable and fixed cost , BEP analysis , Target profit ,sales to achive TP , Operation budget
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2,400 miles in a month, her total operating cost is $700. If she drives 3,500 miles in a month, her total operating cost is $810. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,550 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost
Rahul
None
Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMusclePowerGymProForceSelling price per unit$141 $194 $281 Contribution margin per unit 42 76 57 Monthly sales volume—units 3,030 2,010 1,080 Fixed expenses per month Total of $315,600Calculate the contribution margin ratio of each product b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's monthly break-even point in sales dollars. d. Calculate the firm's monthly operating income. e-1. Management is considering the elimination of the ProForce model due to its low sales volume and low contribution margin ratio. As a result, total fixed expenses can be reduced to $263,850 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. f-1. Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 492…
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: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Cost per Cost per Month Cruise $ 6,500 $ 479.00 $ 2,900 Passenger $ 3.00 $ 5,300 $ 30.00 $ 3,400 $ 1.50 For example, vessel operating costs should be $6,500 per month plus $479.00 per cruise plus $3.00 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 57 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…

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