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Camp Rainbow offers overnight summer camp programs for children ages 1 0 to 1 4 every summer during June and July. Each camp session is
Camp Rainbow offers overnight summer camp programs for children
ages to every summer during June and July. Each camp session is
one week and can accommodate up to children. The camp is not
coed, so boys attend during the oddnumbered weeks and girls attend
during the evennumbered 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
children, and one camp counselor is assigned to each cabin. Three
camp managers are onsite regardless of the number of campers
enrolled.
Following is the cost information for Camp Rainbow's operations last
summer:
Suppose that Rainbow is contemplating staying open one additional week during the
summer.
Required:
Using the results of the leastsquares regression analysis, determine Rainbow's
contribution margin per camper if each camper pays $ to attend the camp for a
week.
Using the results of the leastsquares regression analysis, prepare a contribution
margin income statement for week assuming Rainbow expects to have
campers that week.
Should Rainbow add a ninth week to its schedule?
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