Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 13 Oct 2017 My Price 7.00

Icicle Bay Tours

 

 

EXERCISE 9–5 Prepare a Flexible Budget with More Than One Cost Driver [LO5]

Icicle Bay Tours operates day tours of coastal glaciers in Alaska on its tour boat the Emerald 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 80 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below:

 

 

For example, vessel operating costs should be $6,800 per month plus $475.00 per cruise plus $3.50 per passenger. The company’s sales should average $28.00 per passenger. The company’s planning budget for August is based on 58 cruises and 3,200 passengers.

Required:

Prepare the company’s planning budget for August.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Oct 2017 03:10 PM My Price 7.00

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