Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 1014 every summer during

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Required information (The following information applies to the questions displayed below.) 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. The results of the least-squares regression of the number of campers and the cost to run camp are given below. Following is the cost information for Camp Rainbow's operations last summer: Week 1 2 3 4 5 6 7 8 Number of Cost to Run Campers Camp 90 $8,050 118 8,460 156 10,900 174 11,100 188 13,670 184 14,300 170 12,325 156 11,270 Intercept X Variable i Coefficients 1876.55 60.73 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 $175 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 170 campers that week. 3. Should Rainbow add ninth week to its schedule? 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 $175 to attend the camp for a week. (Round your unit contribution margin and contribution margin ratio to two decimal places (i.e., .1234 12.34%.)) Per camper Unit Contribution Margin Contribution Margin Ratio % Using the results of the least-squares regression analysis, prepare a contribution margin income statement for week 9 assuming Rainbow expects to have 170 campers that week. (Round your intermediate calculations and final answer to 2 decimal places.) CAMP RAINBOW Contribution Margin Income Statement For Possible 9th Week Contribution Margin Net Operating Income Should Rainbow add a ninth week to its schedule? Should Rainbow add a ninth week to its schedule

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

4th Edition

1473729521, 9781473729520

More Books

Students also viewed these Accounting questions

Question

I felt sorry for the clerk.

Answered: 1 week ago

Question

How would you rate Indra Nooyi using the Blake-Mouton grid?

Answered: 1 week ago