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 Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,100 $ 475.00 $ 3.40 Advertising $ 2,500 Administrative costs $ 5,900 $ 36.00 $ 1.50 Insurance $ 3,800 For example, vessel operating costs should be $6,100 per month plus $475.00 per cruise plus $3.40 per passenger. The companys sales should average $29.00 per passenger. The companys planning budget for July is based on 55 cruises and 3,000 passengers.

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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per Per Month Cruise Passenger 6,100 $475.00 3.40 Vessel operating costs 2,500 Advertising Administrative costs 5,900 36.00 1.50 3,800 Insurance For example, vessel operating costs should be $6,100 per month plus $475.00 per cruise plus $3.40 per passenger. The company's sales should average $29.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,000 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 Hints References eBook & Resources Hint #1