Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 88 pas be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month Vessel operating costs $ 6,100 Cost per Cruise $ 474.00 Cost per Passenger $ 3.30 $ 2,300 $ 5,800 $ 3,900 $ 30.00 $ 1.50 Advertising Administrative costs Insurance For example, vessel operating costs should be $6,100 per month plus $474.00 per cruise plus $3.30 per passenger. The d ales should average $29.00 per passenger. In July, the company provided 59 cruises for a total of 3,000 passengers. Required:
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 88 pas be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month Vessel operating costs $ 6,100 Cost per Cruise $ 474.00 Cost per Passenger $ 3.30 $ 2,300 $ 5,800 $ 3,900 $ 30.00 $ 1.50 Advertising Administrative costs Insurance For example, vessel operating costs should be $6,100 per month plus $474.00 per cruise plus $3.30 per passenger. The d ales should average $29.00 per passenger. In July, the company provided 59 cruises for a total of 3,000 passengers. Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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