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Exercise 5A-2 (Static) Least-Squares Regression (LO5-11) [The following information applies to the questions displayed below] Bargain Rental Car offers rental cars in an off-airport location

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Exercise 5A-2 (Static) Least-Squares Regression (LO5-11) [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: Rental Returns Car Wash Costs Month January February 2,380 $10,825 2,421 $11,865 March 2,586 $ 11,332 April 2,725 $ 12,422 May 2,968 $ 13,850 June 3,281 $14,419 July 3,353 $14,935 3,489 $15,738 August September 3,057 $ 13,563 October. 2,876 $11,889 November 2,735 $ 12,683 December 2,983 $13,796 Exercise 5A-2 Part 2 (Static) 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 ost per rental return 8 ch ii Required information Exercise 5A-4 (Static) High-Low Method; Scattergraph Analysis (LO5-10] [The following information applies to the questions displayed below.) Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Units Total Shipping Shipped Month January Expense $1,800 3 February 6 $ 2,300 March $ 1,700 $ 2,000 April 5 May $ 2,300 June $ 2,700 July $ 1,200 Exercise 5A-4 Part 2 (Static) 2. Using the high-low method, estimate the cost formula for shipping expense. Variable shipping expense per unit Fixed shipping expense per month of 14 www HH

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