aces Required information [The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 10 to 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 Number of Cost to Run Week Campers Camp 1 190 2 100 . 176 $14,020 8.170 14,000 4 90 8.720 S 164 11,590 " 106 8,650 7 122 9,120 160 12,570 Intercept x Variable 1 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? aces Required information [The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 10 to 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 Number of Cost to Run Week Campers Camp 1 190 2 100 . 176 $14,020 8.170 14,000 4 90 8.720 S 164 11,590 " 106 8,650 7 122 9,120 160 12,570 Intercept x Variable 1 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?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 39P
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aces
Required information
[The following information applies to the questions displayed below.)
Camp Rainbow offers overnight summer camp programs for children ages 10 to 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
Number of Cost to Run
Week
Campers
Camp
1
190
2
100
.
176
$14,020
8.170
14,000
4
90
8.720
S
164
11,590
"
106
8,650
7
122
9,120
160
12,570
Intercept
x Variable 1
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?
Transcribed Image Text:aces Required information [The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 10 to 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 Number of Cost to Run Week Campers Camp 1 190 2 100 . 176 $14,020 8.170 14,000 4 90 8.720 S 164 11,590 " 106 8,650 7 122 9,120 160 12,570 Intercept x Variable 1 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?
aces
Required information
[The following information applies to the questions displayed below.)
Camp Rainbow offers overnight summer camp programs for children ages 10 to 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
Number of Cost to Run
Week
Campers
Camp
1
190
2
100
.
176
$14,020
8.170
14,000
4
90
8.720
S
164
11,590
"
106
8,650
7
122
9,120
160
12,570
Intercept
x Variable 1
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?
Transcribed Image Text:aces Required information [The following information applies to the questions displayed below.) Camp Rainbow offers overnight summer camp programs for children ages 10 to 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 Number of Cost to Run Week Campers Camp 1 190 2 100 . 176 $14,020 8.170 14,000 4 90 8.720 S 164 11,590 " 106 8,650 7 122 9,120 160 12,570 Intercept x Variable 1 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?
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