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 104 children attend a session.
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 104 children attend a session.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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:
Number of Cost to Run
Week
Campers
Camp
$14,420
188
2
116
9,150
14,440
10,08০
10,090
14,410
8,750
11,370
3
174
4
142
146
176
7
104
8.
166
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 104 children attend a session.
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