Camp Rainbow offers overnight summer camp programs for children ages 10 to 14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camps resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children.

The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled.

Following is the cost information for Camp Rainbows operations last summer:

Week	Number of Campers	Cost to Run Camp
1	116	$ 9,330
2	138	11,300
3	154	12,200
4	98	8,000
5	102	8,530
6	134	10,390
7	122	9,830
8	108	8,950

	Coefficients
Intercept	980.24
X Variable 1	72.72

Suppose that Rainbow is contemplating staying open one additional week during the summer.

Required:

1.Using the results of the least-squares regression analysis, determine Rainbows contribution margin per camper if each camper pays $171 to attend the camp for a week.

2.Using the results of the least-squares regression analysis, prepare a contribution margin income statement for week 9 assuming Rainbow expects to have 122 campers that week.

3.Should Rainbow add a ninth week to its schedule?