Question

UtoSaveUFF U DUCuller View Share ert Draw Design Layout References Mailings Calibri (Bo... 12 A A Aa A. BIUab , X APA C Review v Styles Styles Pane Dictate ALL Required information Camp Rainbow offers overnight summer camp programs for children ages 10-14 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: Week WN Number of Campers Cost to Run Camp $8,630 140 11,740 108 8,830 120 9.400 9,010 100 8,610 8,680 124 9,590 118 90 00 O Intercept Number of Campers Coefficients 2,227.10 62.30 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 $173 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? Using the results of the least-squares regression analysis, determine Rainbow's contribution margin per camper if each camper pays $173 to attend the camp for a week. (Round your of 2 384 words I Foolish (Inited States) Focus '

Answer 1

Units contibution Margin Cotibution Margin Ratio (173-62.30) 110.70/173 110.70 63.99% Sales Variable Expenses Contibution Margin fixedCost Net operating income 21106.00 (122*173) 7600.60 (122*62.30) 13505.40 2227.10 11278.30 Should Rainbow add the Nonth week to its Schedule YES