Exercise 5A 2 (Algo) Least Squares Regression LO5 11 Skip to question The following information applies to the questions displayed below 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 its 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 Rental Returns Car Wash Costs January 2,400 $ 10,700 February 2,500 $ 13,000 March 2,700 $ 11,500 April 3,000 $ 13,800 May 3,600 $ 15,900 June 5,000 $ 22,700 July 5,500 $ 21,900 August 5,400 $ 21,400 September 4,700 $ 22,500 October 3,900 $ 20,200 November 2,200 $ 10,400 December 2,700 $ 13,200 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 (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places )

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Exercise 5A 2 (Algo) Least Squares Regression  LO5 11  Skip to question  The following information applies to the questions displayed below   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 its 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 Rental Returns Car Wash Costs January 2,400 $ 10,700 February 2,500 $ 13,000 March 2,700 $ 11,500 April 3,000 $ 13,800 May 3,600 $ 15,900 June 5,000 $ 22,700 July 5,500 $ 21,900 August 5,400 $ 21,400 September 4,700 $ 22,500 October 3,900 $ 20,200 November 2,200 $ 10,400 December 2,700 $ 13,200 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  (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places )

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Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] Skip to question [The following information applies to the questions displayed

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Fundamentals of Financial Accounting

Month	Rental Returns	Car Wash Costs
January	2,400	$	10,700
February	2,500	$	13,000
March	2,700	$	11,500
April	3,000	$	13,800
May	3,600	$	15,900
June	5,000	$	22,700
July	5,500	$	21,900
August	5,400	$	21,400
September	4,700	$	22,500
October	3,900	$	20,200
November	2,200	$	10,400
December	2,700	$	13,200

Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] Skip to question [The following information applies to the questions displayed

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Fundamentals of Financial Accounting

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