Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Camp Rainbow offers overnight summer camp programs for children ages 1014 every summer during June and July. Each camp session is one week and can
Camp Rainbow offers overnight summer camp programs for children ages 1014 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 camp's 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 Rainbow's operations last summer: Week 12,650 2 3 4 * 5 Number of Cost to Run Campers Camp 140 $10,160 154 104 8,330 182 14, 090 102 8,440 190 13,820 148 11,640 90 8,450 7 8 E5-16 (Algo) Preparing Contribution Margin Income Statement [LO 5-5] Coefficients Intercept 1,986.48 Number of Campers 63.66 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 Rainbow's contribution margin per camper if each camper pays $164 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 166 campers that week. 3. Should Rainbow add a ninth week to its schedule
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started