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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
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 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; Number of Cost to Run Week Campers Camp 1 172 $ 13,810 2 112 9,350 3 148 11,360 4 184 14,380 5 174 14,000 6 152 12,440 7 140 10,180 8 104 8,440 Coefficients Intercept 359.90 X Variable 1 76 . 80 Suppose that Rainbow is contemplating staying open one additional week during the summer. Required: 1. Using the results ofthe least-squares regression analysis, determine Rainbow's contribution margin per camper if each camper pays $167 to attend the camp for a week. 2. Using the results ofthe least-squares regression analysis, prepare a contribution margin income statement for week 9 assuming Rainbow expects to have 140 campers that week. 3. Should Rainbow add a ninth week to its schedule? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the results of the least-squares regression analysis, determine Rainbow's contribution margin per camper if each camper pays $167 to attend the camp for a week. Note: Do not round your intermediate calculations. Round your unit contribution margin and contribution margin ratio to two decimal places (i.e. 0.1234 should be entered as 12.34%.) Show less; Unit Contribution Margin per camper Contribution Margin Ratio \"fa Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the results of the least-squares regression analysis, prepare a contribution margin income statement for week 9 assuming Rainbow expects to have 140 campers that week. Note: Round your intermediate calculations and nal answer to 2 decimal places. Contribution Margin Net Operating Income Required 1 Requiredz ] Required 3 E Should Rainbow add a ninth week to its schedule
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