Question

ch Required information [The following information applies to the questions displayed below.] 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. 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 Number of Campers 90 118 156 174 188 184 170 156 Cost to Run Camp $8,650 8,460 10,900 11,100 13,670 14,300 12,325 11,270

Answer 1

Answer:

4)

Variable cost per Child     = ( Costs at Highest no. of Campers (-) Costs at Lowest no. of Campers )                               / ( Highest no. of Campers (-) lowest no. of Campers )     =    ( $ 13,670 (-) $ 8,050 ) / ( 188 (-) 90 )     =    $ 5,620 / 98     =   $ 57.35 Per Camper

Fixed cost                    =   Costs at Highest no. of Campers (-) ( Highest no. of Campers x Variable cost per unit   )                    = $ 13,670 (-) ( 188 x $ 57.35)                   = $ 13,670 (-) $ 10,781.80                   =    $ 2,888.20

Fixed cost                                = $ 2,888.20

Variable cost per Child      =    $ 57.35 per Child

5)

Estimated monthly overhead costs              = Fixed Cost + ( 170 x Variable Cost per MH )              =   $ 2,888.20 + ( 170 x $ 57.35 )              =    $ 2,888 + $ 9,749.50             =    $ 12,637.70

Expected Operating Cost   =      $ 12,637.70