EXERCISE 95 Prepare a Flexible Budget with More Than One Cost Driver LO95 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 80 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

Vessel operating costs : Fixed Cost per Month: $5,200 Cost per Cruise: $480.00 Cost per Passenger: $2.00 Advertising : Fixed Cost per Month: $1,700 Administrative costs : Fixed Cost per Month: $4,300 Cost per Cruise $24.00 Cost per Passenger: $1.00 Insurance : Fixed Cost per Month: $2,900

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.

Required: show all the work process: Using Exhibit 99 as your guide, prepare the companys flexible budget for July.