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 $ 6,600 $ 479.00 $ 3.20 advertising $ 3,000 administrative costs $ 6,000 $ 40.00 $ 1.50 insurance $ 3,700 for example, vessel operating costs should be $6,600 per month plus $479.00 per cruise plus $3.20 per passenger. the company’s sales should average $28.00 per passenger. the company’s planning budget for july is based on 57 cruises and 3,050 passengers.
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Alyeski tours operates day tours of coastal glaciers in alaska on its tour boat the blue glacier. ma...
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