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 87 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	$ 6,300	$ 475.00	$ 3.10
Advertising	$ 2,900
Administrative costs	$ 5,300	$ 39.00	$ 1.50
Insurance	$ 3,100

For example, vessel operating costs should be $6,300 per month plus $475.00 per cruise plus $3.10 per passenger. The companys sales should average $34.00 per passenger. In July, the company provided 54 cruises for a total of 3,200 passengers.

Required:

Prepare the companys flexible budget for July.

\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Alyeski Tours } \\ \hline \multicolumn{2}{|c|}{ Flexible Budget } \\ \hline \multicolumn{2}{|c|}{ For the Month Ended July 31} \\ \hline & \\ \hline Revenue & \\ \hline Expenses: & \\ \hline Vessel operating costs & \\ \hline Advertising & \\ \hline Administrative costs & \\ \hline Insurance & \\ \hline Total expense & $ \\ \hline Net operating income & 0 \\ \hline \end{tabular}