Question

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 Number of Campers 140 90 174 Cost to Run Camp $11,460 8,660 14,270 12,090 14,370 11,930 14,150 13,590 154 178 172 190

Answer 1

1. Contribution Margin per camper = Fees - Variable Cost
= $166 - $66.39 = $99.61 per camper
Contribution Margin Ratio = $99.61/166 x 100 = 60.01%

2.

Contribution Margin Income Statement
Revenue	$          18,592.00	=112*166
Less Variable Costs	$          11,156.32	=112*99.61
Contribution Margin	$            7,435.68
Less Fixed Costs	$            1,779.88
Net Operating Income	$            5,655.80

3.
Yes ninth week should be added to the schedule, since it gives net operating income of $5655.80