Reference no: EM132650027

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 88 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                                  472.00                           3.20

Advertising                          $ 2, 500

Administrative costs            $ 5,606                                   $ 34.60                       $ 1.50

Insurance                             $ 3,300

Question 1: Prepare the company's flexible budget for July