# Question & Answer: Camp Rainbow offers ovenight summer camp programs for children ages 10-14 every summer during June and July. Each ca…..

Camp Rainbow offers ovenight summer camp programs for children ages 10-14 every summer during June and July. Each camp session is one week and can 8ccommodale up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and gids atend during th even-numbered weeks. While at the camp, perticipants make crafis, perticipate in various sports, help care for the camp’s resident animals, heve cookouts and hayrides, end help assemble boys for local underprivleged chidren. 0 ㎝ldron, and ono camp counso or ls assigned o oach cabin. roc oamp managors aro on s o ro ardlog at ho nu toro camp ars on 1 od. The rsult, T o camp pro dog all food as ol as ma onals or all craft c acoos and t o oy o bo aesa biod. Ono cabin can accommodato up o ofthe loast-squares rogression of the numbor of campers and tha cost to run camp aro given below Coefficients Intercept Number cf Campers 60.73 Suppose that Rainbow is contemplating staying open one additional week during the summar Required 1. Usr g the results of the 1 ast quares egress on analysis determine Rainbows contribution margin per camper reac amp er pays \$175 to a end the car p fora week Round your nit contribution ma n and contribution ma ratio to two deci al places Le 1234 12.34% Unit Contribuion Margin114.2 Contibuton Margin Ratio 2. Using the rosults of the least-aquaros regression analysis, prepare a contribution margin incorne statoment for weak 9 asuming Rainbow expects to have 170 campers that wook. (Round your intermediate calculations and final answer to 2 decimal places Contribution Margin Incomo Statomont For Possible 9th Wook \$ 20750.0 iable Costs 10.324.1 Contribution Margin Costa Nat Operatrg Income17.549 3. Should Rainbow add a ninth week to its schedule? O No Yes

cost= (no of champers*60.73)+1876.55.

for week 9 total attended=170

unit ontribution margin = 175-60.73 = 114.27

unit ontribution margin(%)=unit ontribution margin/sales

= 114.27/175

= 65.30%

2)Income statement (9th week)

sales=170*175 = 29750

variable cost = 60.73*170 = 10245.9

contribution margin = 19504.1

fixed cost = 1876.55

net income = 17627.55

Since it is generated positive income we can add the week

3)Ye