Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat 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 85 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

Fixed Cost per MonthCost per CruiseCost per Passenger

Vessel operating costs$ 6,400$ 480.00$ 3.00

Advertising$ 2,200

Administrative costs$ 5,900$ 34.00$ 1.50

Insurance$ 3,600

For example, vessel operating costs should be $6,400 per month plus $480.00 per cruise plus $3.00 per passenger. The companys sales should average $33.00 per passenger. In July, the company provided 54 cruises for a total of 3,050 passengers.

Required:

Prepare the companys flexible budget for July.

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boot the Blue Glacier. Management has identifed two cost dilvers-the number of cruises and the number of passengers-thot 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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: For example, vessel operating costs should be $6,400 per month plus $480,00 per crulse plus $3,00 per passenger. The company's sales should average $33.00 per passenget. In July, the company provided 54 cruises for a total of 3,050 passengers. Required: Prepare the company's flexble budget for July