Required information [The following information applies to the questions displayed below.] Bargain Rental Car offers rental...

Transcribed Image Text:

Required information [The 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: Car Wash Rental Month Returns Costs January 2,380 $ 10,825 February 2,421 $ 11,865 March 2,586 $ 11,332 April 2,725 $ 12,422 May 2,968 $ 13,850 June 3,281 $ 14,419 July 3,353 $14,935 August 3,489 $ 15,738 September 3,057 $ 13,563 October 2,876 $ 11,889 November December 2,735 $ 12,683 2,983. $ 13,796 2. Using least-squares 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 Required information [The 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: Car Wash Rental Month Returns Costs January 2,380 $ 10,825 February 2,421 $ 11,865 March 2,586 $ 11,332 April 2,725 $ 12,422 May 2,968 $ 13,850 June 3,281 $ 14,419 July 3,353 $14,935 August 3,489 $ 15,738 September 3,057 $ 13,563 October 2,876 $ 11,889 November December 2,735 $ 12,683 2,983. $ 13,796 2. Using least-squares 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