Question
Required information Exercise 5A-2 (Algo) Least-Squares Regression (LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car wants to better understand
Required information Exercise 5A-2 (Algo) Least-Squares Regression (LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Rental Returns Month Car Wash Costa January 2,300 $ 10,400 February 2,500 $ 12,800 March 2,700 $ 11,200 April 2,900 $ 13,400 May June 3,600 $ 15,600 4,900 $ 22,100 July 5,500 $ 21,600 August 5,300 $ 20,700 September 4,700 $ 22,200 October 3,800 November 2,100 $ 19,300 $10,100 December 2,600 $ 12,100 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. Note: Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places. Fixed cost per month Variable cost per rental retum 3.77
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