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Question - 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 84 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
$6,800
$475.00
$3.50
Advertising
$2,700
Administrative costs
$5,500
$40.00
$1.50
Insurance
$3,300
For example, vessel operating costs should be $6,800 per month plus $475.00 per cruise plus $3.50 per passenger. The company sales should average $30.00 per passenger. The company's planning budget for July is based on 57 cruises and 3,100 passengers.
Required - Complete the company's planning budget for July.
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