Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt carries it from the start station to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor. Lorenzo's accountant wants to estimate costs in December, when 8,100 cars are expected to be washed. She tried two different methods to estimate December costs, account analysis and high-low, with number of cars washed as the independent variable for both methods.

Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt carries it from the start station to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor. Lorenzo's accountant wants to estimate costs in December, when 8,100 cars are expected to be washed. She tried two different methods to estimate December costs, account analysis and high-low, with number of cars washed as the independent variable for both methods. To estimate the cost function parameters using account analysis, she analyzed actual costs in June, when 9,200 cars were washed. Her analysis revealed the following total fixed costs and total variable costs for each cost item: Total Cost Cost Item Soap, cloths, and supplies $2,760 Water $1,840 Variable Cost $2,760 $1,840 $26,680 $8,280 Car Wash labor Power for conveyor Supervisor and cashier $29,330 $10,810 $3,700 To estimate the cost function parameters using high-low, she used the following total cost and activity data from July and August: Cost Item Soap, cloths, and supplies Water Car Wash labor July $4,800 $3,200 $22,500 $9,800 $3,450 $43,750 8,000 August $6,780 $4,520 $30,750 $12,770 $3,450 $58,270 11,300 Power for conveyor Supervisor and cashier Total Cars washed REQUIRED (ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A (6 tries; 5 points) 1. Using account analysis, what is the accountant's estimate of total fixed costs for December? 8880 #1 IS CORRECT 4.88 2. Using account analysis, what is the accountant's estimate of total variable costs for December? #2 IS INCORRECT Submit Answer Incorrect. Tries 1/6 Previous Tries Part B (6 tries; 5 points) 1. Using the high-low method, what is the accountant's estimate of total fixed costs for December? 2. Using the high-low method, what is the accountant's estimate of variable costs per unit for December? Submit Answer Tries 0/6