Up to 86 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

For example, vessel operating costs should be $6,300 per month plus $471.00 per cruise plus $3.50 per passenger. The companys sales should average $33.00 per passenger. In July, the company provided 60 cruises for a total of 3,150 passengers.

Cost per Cruise $ 471.00 Cost per Passenger $ 3.50 Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,300 $ 2,000 $ 5,500 $ 3,100 $31.00 $ 1.50 Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense 0 Net operating income $ 0