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 148 Number of Cost to Week Campers Run Camp 172 $13,810 2 112 9,350 11,360 4 184 14,380 5 174 14,000 152 12,440 140 10.180 184 8,440 Required: 4. Using the high-low method, calculate Camp Rainbow's total fixed operating costs and variable operating cost per child 5. Using the high-low method results, calculate the camp's expected operating cost if 140 children attend a session,

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Part 1) Variable cost per camper Under High Low Method = (High Level Cost - Low Level Cost) / (High Level Units - Low Level Units) = (14380-8440)/(184-104) = $ 5940/80 = $ 74.25 Fixed cost = Total High Level cost - High level variable cost = 14380 - ( 74.25 184) = $ 14380-13662 = $ 718 Thus the Final Answer Fixed Cost $ 718 Variable Cost Per Unit $ 74.25 Part 2) Expected operating cost for 140 units = fixed cost + variable cost for 140 units = 718+ ( 74.25*140) =718+10395 != $ 11113 Thus the current answer expected operating cost for 140 units = $ 11113 Expected Cost 11113