09-2

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposes - the number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 83 passengers can be accommodated on the tour boat Data concerning the company's cost formulas appear below. For example, vessel operating costs shouid be $6,200 per month plus $478.00 per cruise plus $3,40 per passenger. The company's sales should average $2800 per passenger. In July, the company provided 55 cruises for a total of 3,050 passengers Required: Prepare the company's flexible budget for July