Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposesthe 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 sufficient demand. Up to 84 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	$ 6,500	$ 477.00	$ 3.20
Advertising	$ 2,100
Administrative costs	$ 5,900	$ 38.00	$ 1.50
Insurance	$ 3,100

For example, vessel operating costs should be $6,500 per month plus $477.00 per cruise plus $3.20 per passenger. The companys sales should average $30.00 per passenger. In July, the company provided 56 cruises for a total of 3,000 passengers.

Required:

Prepare the companys flexible budget for July.

Alyeski Tours Flexible Budget For the Month Ended July 31 \begin{tabular}{|c|c|} \hline Actual cruises & 56 \\ \hline Actual passengers & 3,000 \\ \hline Revenue & 90,000 \\ \hline \multicolumn{2}{|l|}{ Expenses: } \\ \hline \multicolumn{2}{|l|}{ Vessel operating costs } \\ \hline \multicolumn{2}{|l|}{ Advertising } \\ \hline \multicolumn{2}{|l|}{ Administrative costs } \\ \hline \multicolumn{2}{|l|}{ Insurance } \\ \hline Total expenses & 0 \\ \hline Net operating income & 90,000 \\ \hline \end{tabular} Alyeski Tours Flexible Budget For the Month Ended July 31 \begin{tabular}{|c|c|} \hline Actual cruises & 56 \\ \hline Actual passengers & 3,000 \\ \hline Revenue & 90,000 \\ \hline \multicolumn{2}{|l|}{ Expenses: } \\ \hline \multicolumn{2}{|l|}{ Vessel operating costs } \\ \hline \multicolumn{2}{|l|}{ Advertising } \\ \hline \multicolumn{2}{|l|}{ Administrative costs } \\ \hline \multicolumn{2}{|l|}{ Insurance } \\ \hline Total expenses & 0 \\ \hline Net operating income & 90,000 \\ \hline \end{tabular}