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 lemand. Up to 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $6,600 $2,200 $5,900 $3,100 Required: Complete the company's planning budget for July. Alyeski Tours Cost per Cruise $ 471.00 S 33.00 Cost per Passenger $ 3.10 For example, vessel operating costs should be $6,600 per month plus $471.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,150 passengers. $ 1.50
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 lemand. Up to 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $6,600 $2,200 $5,900 $3,100 Required: Complete the company's planning budget for July. Alyeski Tours Cost per Cruise $ 471.00 S 33.00 Cost per Passenger $ 3.10 For example, vessel operating costs should be $6,600 per month plus $471.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,150 passengers. $ 1.50
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 20M
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