Icicle Bay Tours operates day tours of coastal glaciers in Alaska on its tour boat the Emerald Glacier. Management has identified two cost drivers the 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: Fixed Cost per Month Cost Per Cruise Cost Per Passenger Vessel Operating Costs $13,600 $ 950 $7.00 Advertising $ 5,400 Administrative Costs $11,600 $ 36 $3.60 Selling Costs $ 1,000 $ 600 $1.20 Insurance $ 7,200 The Companys sales should average $56 per passenger. The companys planning budget for August is based on 58 cruises and 3,200 passengers.

1a) Prepare the companys planning budget for August.

1b) After preparing the companys planning budget, Flex this budget to show that there were 60 cruises and 3,450 passengers.