Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns Car Wash Costs 2,400 $ 11,000 2,500 $ 13,100 2,700 $ 11,800 3,000 $ 14,300 3,600 $ 16, 200 5,000 $ 23,300 5,500 $ 22,200 5,500 $ 22,200 4,700 $ 22,800 4,000 $ 21,100 2,200 $ 10,700 2,800 $ 14,200 Exercise 5A-2 Part 2 2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (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 / Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns Car Wash Costs 2,400 $ 11,000 2,500 $ 13,100 2,700 $ 11,800 3,000 $ 14,300 3,600 $ 16, 200 5,000 $ 23,300 5,500 $ 22,200 5,500 $ 22,200 4,700 $ 22,800 4,000 $ 21,100 2,200 $ 10, 700 2,800 $ 14,200 ercise 5A-2 Part 1 quired: repare a scattergraph plot. (Place car wash costs on the vertical axis and rental returns on the horizontal axis.) Instructions: 1. On the graph below, use the point tool (January) to plot rental returns on the horizontal axis and car wash costs on the axis. 2. Repeat the same process for the plotter tools (February to December). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. January Car Wash Costs $30,000 - February $25,000 O March $20,000 $15,000 April $10,000 $5,000 $ 0 1.000 2.000 3,000 4.000 5.000 6.000 7.000 January Car Wash Costs $30,000 February $25,000 March $20,000 $15,000 $10,000 $5,000 o 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Rental Returns Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns Car Wash Costs 2,400 $ 11,000 2,500 $ 13,100 2,700 $ 11,800 3,000 $ 14,300 3,600 $ 16,200 5,000 $ 23,300 5,500 $ 22,200 5,500 $ 22,200 4,700 $ 22,800 4,000 $ 21,100 2,200 $ 10,700 2,800 $ 14,200 Exercise 5A-2 Part 2 2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) This is a numeric cell, so please enter numbers only. Fixed Variable cost per rental return
