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Required information [ The following information applies to the questions displayed below. ] Bargain Rental Car offers rental cars in an off - airport location
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The following information applies to the questions displayed below.
Bargain Rental Car offers rental cars in an offairport 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:
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 decimal places. Bargain Rental Car offers rental cars in an offairport 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: MonthRental ReturnsCar Wash CostsJanuary$ February$ March$ April$ May$ June$ July$ August$ September$ October$ November$ December$ 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 decimal places.
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