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 80 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	$ 5,200	$ 480.00	$ 2.00
Advertising	$ 1,700
Administrative costs	$ 4,300	$ 24.00	$ 1.00
Insurance	$ 2,900

Prepare the companys flexible budget for July.

For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The companys sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers.

Alyeski Tours
Flexible Budget
For the Month Ended July 31
Actual cruisess	not attempted
Actual passengert	not attempted
Revenue	not attempted
Expenses:
Vessel operating costs	not attempted
Advertising	not attempted
Administrative costs	not attempted
Insurance	not attempted
Total expense	0
Net operating income	$0