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 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 88 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Passenger $ 3.10 eBook Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month Cost per Cruise $ 6,400 $ 475.00 $ 2,000 $ 5,500 $ 34.00 $ 3,200 $ 1.50 Hint Print -ferences For example, vessel operating costs should be $6,400 per month plus $475.00 per cruise plus $3.10 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 53 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs 1Sue dice 3, ZUU For example, vessel operating costs should be $6,400 per month plus $475.00 per cruise plus $3.10 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 53 cruises for a total of 3,100 passengers. ints Required: Prepare the company's flexible budget for July. eBook Hint Alyeski Tours Flexible Budget For the Month Ended July 31 Print References Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.50 $ 0.06 $ 0.20 $ 0.30 $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses eBook $ 4,100 $ 8,400 $ 2,100 $1,800 Hint $ 0.05 Print ferences For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.80 per car washed. Required: Prepare the company's planning budget for August. nts eBook Lavage Rapide Planning Budget For the Month Ended August 31 Hint Print eferences Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
