Question

Alyeskl Tours operates day tours of coastal glaciers in Alaska on its four 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 there is sufficient demand. Up to 90 passengers can be accommodated on the four boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month $6,800 $2.800 $5,800 $3,200 Cost per Cruise Cruise $ 476.00 Cost per Pas Passenger $ 3.10 Vessel operating costs Advertising Administrative costs Insurance $ 32.00 $ 1.50 For example, vessel operating costs should be $6,800 per month plus $476.00 per cruise plus $3.10 per passenger The company's sales should average $32.00 per passenger. The company's planning budget for July is based on 58 cruises and 3,050 passengers Required: Complete the company's planning budget for July Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 12

Answer 1

Budget Planning for Month of July

Revenue	97600
Expenses:
Vessel Operating Cost	43863
[6800+(58*476)+(3050*3.10)
Advertising	2800
Administrative Cost	12231
[5800+(58*32)+(3050*1.5)
Insurance	3200
Total Expense	62094
Net Operating Income	35506