Question

Consider Camp Rainbow’s cost equation results obtained in E5-11 using least-squares regression.
Suppose that Rainbow is contemplating staying open one additional week during the summer.


Required:
1. Determine Rainbow’s contribution margin per camper if each camper pays $175 to attend the camp for a week.
2. Prepare a contribution margin income statement for week 9 assuming Rainbow expects to have 170 campers that week.
3. Explain whether Rainbow should add a ninth week to itsschedule.


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  • CreatedFebruary 27, 2015
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