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please complete and explain Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to
please complete and explain
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 January February March April May June July August September October November December Rental Returns 2,300 2,500 2,700 2,900 3,600 4,900 5,500 5,300 4,600 3,800 2,100 2,600 Car Wash Costs $ 10,300 $ 12,800 $ 11,100 $ 13,200 $ 15,500 $ 21,900 $ 21,500 $ 20,400 $ 22,100 $ 19,000 $ 10,000 $ 11,800 Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: (Loss amounts should be indicated by a minus sign.) Case #1 Case #2 Case #3 Unit sold 9,500 5 20.100 Case #4 4,700 $ 136,300 Sales $ 275,500 $ 370,000 Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit 161,500 91,000 201.000 172,000 35,200 $ 73,000 (7,200 $ 180,300 $ $ 14 $ 13 Required B > Required: a Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: (Loss amounts should be indi minus sign.) Case #1 Case #3 Case #4 $ 456,000 $ $ Case #2 198,000 124,740 70,000 300,000 84,000 Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ 472,000 117,900 85 % 68.400 40 % $ (14,000) % %Step by Step Solution
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