Exercise 9–5 prepare a flexible budget with more than one cost driver lo9–5 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 80 passengers can be accommodated on the tour boat. data concerning the company’s cost formulas appear below: vessel operating costs : fixed cost per month: $5,200 cost per cruise: $480.00 cost per passenger: $2.00advertising : fixed cost per month: $1,700administrative costs : fixed cost per month: $4,300 cost per cruise $24.00 cost per passenger: $1.00insurance : fixed cost per month: $2,900for example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. the company’s sales should average $25 per passenger. in july, the company provided 24 cruises for a total of 1,400 passengers. required: show all the work process:
using exhibit 9–9 as your guide, prepare the company’s flexible budget for july.