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Required information [T he following information applies to the questions displayed below. ] Bargain Rental Car offers rental cars in an off-airport location near a
Required information [T he 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 Month Returns Car Wash Costs January 2,500 $ 11,600 February 2,500 $ 13,400 March 2,800 5 12,400 April 3,100 $ 15,200 May 3,700 $ 16,800 June 5,200 $ 24,500 July 5,600 $ 22,800 August 5,600 $ 23,700 September 4,800 $ 23,400 October 4,200 $ 22,900 November 2,300 $ 11,300 December 3,000 $ 16,300 2. Using leastsquares regression, estimate the variable cost per rental return and the monthiy xed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) 6 Answer is complete but not entirely correct. Fixed cost per month $ 199,351 9 Variable cost per rental return $ 3.96 0
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