es 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: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $5,200 $ 1,700 $ 4,300 $ 2,900 Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget Cost per Cruise $ 480.00 $ 24.00 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. Cost per Passenger $ 2.00 $ 1.00
es 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: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $5,200 $ 1,700 $ 4,300 $ 2,900 Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget Cost per Cruise $ 480.00 $ 24.00 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. Cost per Passenger $ 2.00 $ 1.00
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3MTC
Related questions
Question
![es
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
Fixed Cost
per Month
$ 5,200
$1,700.
$ 4,300
$ 2,900
Required:
Prepare the company's flexible budget for July.
Alyeski Tours
Flexible Budget
Cost per
Cruise
$480.00
$ 24.00
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.
Cost per
Passenger
$ 2.00
$ 1.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6ad27f7-143a-4af8-9abe-5fd393540510%2F18d7f12a-9cd5-440a-8fb5-64edae14c7cd%2Fveuskor_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
Fixed Cost
per Month
$ 5,200
$1,700.
$ 4,300
$ 2,900
Required:
Prepare the company's flexible budget for July.
Alyeski Tours
Flexible Budget
Cost per
Cruise
$480.00
$ 24.00
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.
Cost per
Passenger
$ 2.00
$ 1.00
![es
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
Fixed Cost
per Month
$ 5,200
$1,700.
$ 4,300
$ 2,900
Required:
Prepare the company's flexible budget for July.
Alyeski Tours
Flexible Budget
Cost per
Cruise
$480.00
$ 24.00
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.
Cost per
Passenger
$ 2.00
$ 1.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6ad27f7-143a-4af8-9abe-5fd393540510%2F18d7f12a-9cd5-440a-8fb5-64edae14c7cd%2Fozcvl2p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
Fixed Cost
per Month
$ 5,200
$1,700.
$ 4,300
$ 2,900
Required:
Prepare the company's flexible budget for July.
Alyeski Tours
Flexible Budget
Cost per
Cruise
$480.00
$ 24.00
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.
Cost per
Passenger
$ 2.00
$ 1.00
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