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 86 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 $ 6,800 $2,200 $ 5,300 $3,600 Cost per Cruise $ 478.00 $ 32.00 Cost per Passenger $ 3.10 $ 1.50 For example, vessel operating costs should be $6,800 per month plus $478.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. In July, the company provided 57 cruises for a total of 3,100 passengers.

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 86 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 $ 6,800 $2,200 $ 5,300 $3,600 Cost per Cruise $ 478.00 $ 32.00 Cost per Passenger $ 3.10 $ 1.50 For example, vessel operating costs should be $6,800 per month plus $478.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. In July, the company provided 57 cruises for a total of 3,100 passengers.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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