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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. dentified two cost drivers-the number of cruises

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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. dentified two cost drivers-the number of cruises and the number of passengers Saved to this PC 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 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost Cost per Cost per per Month Cruise Passenger $ 6,200 $ 472.00 $ 2,700 $ 3.30 $ 5,100 $ 40.00 $ 3,400 $ 1.50 For example, vessel operating costs should be $6,200 per month plus $472.00 per cruise plus $3.30 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 59 cruises for a total of 3,100 passengers.

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