Reference no: EM13590418

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 87 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	$	6,100	$	471.00	$	3.20
Advertising	$	2,900
Administrative costs	$	6,000	$	34.00	$	1.50
Insurance	$	3,800

For example, vessel operating costs should be $6,100 per month plus $471.00 per cruise plus $3.20 per passenger. The company's sales should average $33.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,100 passengers.

Complete the companies planning budget for July

Revenue:

Expenses:

• Vessel operating costs
• Advertising

Administrative costs:

Insurance:

• Total expense
• Net Operating Income