Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposes

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposes-the number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficlent demand. Up to 89 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below:
For example, vessel operating costs should be $6,400 per month plus $479.00 per cruise plus $3.30 per passenger. The company's sales should average $35.00 per passenger. In July, the company provided 55 cruises for a total of 3,150 passengers.
Required:
Prepare the company's flexible budget for July.
\table[[Alyeski Tours,],[Forible Budget,],[,],[,],[Revenue,],[Expenses:,],[Vessel operating costs,],[Advertising,],[Administrative costs,],[Insurance,],[Total expenses,],[Net operating income,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting An International Approach

Authors: Jagdish Kothari, Elisabetta Barone

1st Edition

0273712748, 978-0273712749

More Books

Students also viewed these Accounting questions

Question

What must a person do to apply?

Answered: 1 week ago

Question

What are some of the hiring standards to avoid?

Answered: 1 week ago

Question

What are some metrics for evaluating recruitment and selection?

Answered: 1 week ago