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EXERCISE 9-5 Prepare a Flexible Budget with More Than One Cost Driver LO9-5 Alyeski Tours operates day tours of coastal glaciers in Alaska on its

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EXERCISE 9-5 Prepare a Flexible Budget with More Than One Cost Driver LO9-5 Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Bluc Glacie Management has identified two cost drivers-the number of cruises and the number of that it uses in its budgeting and performance reports. The company publishes a schedule of da cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passenge can be accommodated on the tour boat. Data concerning the company's cost formulas appear belo passengers Cost per Cruise $480.00 Cost per Passenge $2.00 Fixed Cost per Month $5,200 $1,700 $4,300 $2.900 Vessel operating costs $24.00 $1.00 Administrative costs Insurance Chapter 9 For example, vessel operating costs should be $$,200 per month plas $480 per cruise passenger. The company's sales should average $25 per passenger cruises for a total of I,400 Using Exhibit 9-9 as your guide, prepare the company's flexible budget for July. EXERCISE 9-5 Prepare a Flexible Budget with More Than One Cost Driver LO9-5 Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Bluc Glacie Management has identified two cost drivers-the number of cruises and the number of that it uses in its budgeting and performance reports. The company publishes a schedule of da cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passenge can be accommodated on the tour boat. Data concerning the company's cost formulas appear belo passengers Cost per Cruise $480.00 Cost per Passenge $2.00 Fixed Cost per Month $5,200 $1,700 $4,300 $2.900 Vessel operating costs $24.00 $1.00 Administrative costs Insurance Chapter 9 For example, vessel operating costs should be $$,200 per month plas $480 per cruise passenger. The company's sales should average $25 per passenger cruises for a total of I,400 Using Exhibit 9-9 as your guide, prepare the company's flexible budget for July

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