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Required information [The foiiowing information applies to the questions dispiayed below] Bargain Rental Car offers rental cars in an offairport location near a majortourist destination
Required information [The foiiowing information applies to the questions dispiayed below] Bargain Rental Car offers rental cars in an offairport location near a majortourist destination in California. Management would like to better understand the variable and fixed portions ofits 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 ofits car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Rental Car Wash Month Returns Costs January 2,466 $ 11,166 February 2,566 $ 13,266 March 2,799 $ 11,999 April 3,999 $ 14,499 May 3,699 $ 16,366 June 5,199 $ 23,599 July 5,599 $ 22,399 August 5,599 $ 22,499 September 4,766 $ 22,966 October 4,999 $ 21,499 November 2,266 $ 16, 866 December 2,866 $ 14, 666 2. Using leastsquares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (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 return
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