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EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. Management would like to better understand the behavior
EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. Management would like to better understand the behavior of the companys costs. One of those costs is the cost of washing cars. 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 costs of operating the car wash should be related to the number of rental returns. Accordingly, the following data have been compiled: Month Rental Returns Car Wash Costs January 2,490 $ 11,913 February 2,543 $ 13,591 March 2,821 $ 12,705 April 3,144 $ 15,649 May 3,720 $ 17,134 June 5,221 $ 25,055 July 5,612 $ 23,070 August 5,718 $ 24,430 September 4,808 $ 23,660 October 4,458 $ 23,783 November 2,286 $ 11,630 December 3,125 $ 17,381 Required: Using least-squares regression, estimate the fixed cost and variable cost elements of monthly car wash costs. (Round the "Variable cost per unit" to 2 decimal places and "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.) What is Fixed cost $ What is Variable cost per unit $
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