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 $86$ passengers can be accommodated on the tour boat. Data concerning the company$$s cost formulas appear below:

Fixed Cost per Month Cost per Cruise Cost per Passenger

Vessel operating costs $ $6,400$ $ $479\mathrm{.}00$ $ $3\mathrm{.}20$

Advertising $ $2,600$

Administrative costs $ $5,100$ $ $38\mathrm{.}00$ $ $1\mathrm{.}50$

Insurance $ $3,700$

For example, vessel operating costs should be $$6,400$ per month plus $$479\mathrm{.}00$ per cruise plus $$3\mathrm{.}20$ per passenger. The company$$s sales should average $$32\mathrm{.}00$ per passenger. In July, the company provided $59$ cruises for a total of $3,150$ passengers.

Required:

Prepare the company$$s flexible budget for July.Fixed

Cost per Cost per Cost per

Month Cruise Passenger

$$6,400,$$$479\mathrm{.}00,$$$3\mathrm{.}20$

Vessel operating costs

Advertising

Administrative costs $$2,600,$$$38\mathrm{.}00,$$$1\mathrm{.}50$

Insurance

$$3,700$

For example, vessel operating costs should be $$6,400$ per month plus $$479\mathrm{.}00$ per cruise plus $$3\mathrm{.}20$ per passenger. The company's

sales should average $$32\mathrm{.}00$ per passenger. In July, the company provided $59$ cruises for a total of $3,150$ passengers.

Required:

Prepare the company's flexible budget for July.