re Than One Cost Driver $[$LO$9-3]$

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue 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 company$$s cost formulas appear below:

Fixed Cost per Month Cost per Cruise Cost per Passenger

Vessel operating costs $ $5,200$ $ $480\mathrm{.}00$ $ $2\mathrm{.}00$

Advertising $ $1,700$

Administrative costs $ $4,300$ $ $24\mathrm{.}00$ $ $1\mathrm{.}00$

Insurance $ $2,900$

For example, vessel operating costs should be $$5,200$ per month plus $$480$ per cruise plus $$2$ per passenger. The company$$s sales should average $$25$ per passenger. In July, the company provided $24$ cruises for a total of $1,400$ passengers.

Required:

Prepare the company$$s flexible budget for July.