Camp Rainbow offers overnight summer camp programs for children ages 10-14 every

Question

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 Rur ampersC 90 118 156 174 188 184 170 156 Camp S 8,050 8,460 10,900 11,100 13,670 14,300 12,325 11,270 Required: 4. Using the high -low method, calculate Camp Rainbow's total fxed operating costs and variable operating cost per child. (Round your answers to 2 decimal places.) Fixed Cost S 2,888.95 58 26 5. Using the high-low method results, calculate the camps expected operating cost if 170 children attend a session (Round your answers to 2 decimal places.) ted Cost $ 12,793 15 0 Type here to search

Explanation / Answer

4. High-low method – Variable cost per camper: $57.35

(Cost at high point – Cost at low point) / (Volume at high point – Volume at low point) = ($13670 - $8050) / (188 – 90) = $5620 / 98 = $57.35

High-low method – Fixed cost: $2888.50

Total cost at low point – Variable cost at low point = $8050 – ($57.35 x 90) = $8050 - $5161.50 = $2888.50

5. Expected operating cost for 170 children = $2888.50 + (170 x $57.35) = $2888.50 + $9749.50 = $12638

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