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2 Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car
2 Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Rental Car Wash Costs Month Returns January 2,500 $ 11,800 February 2,500 $ 13,500 ook March 2,800 $ 12,600 April 3,100 $ 15,500 Print May June 3,700 $ 17,000 5,200 $ 24,900 July 5,600 $ 23,000 August 5,700 $ 24,200 September 4,800 $ 23,600 October 4,900 $ 23,500 erences November 2,300 $ 11,500 December 3,100 $ 17,000 Mc Graw Hill Exercise 5A-2 Part 2 (Algo) 2. Using least-squares regression; estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. Note: Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places. Fixed cost per month Variable cost per rental return < Prev Gm of 5 Next >
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