Question

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 it 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: Month January February March April MAY June July August September October November December Rental Returns 2,400 2,500 2,700 3,000 3,600 5,000 5,500 5,400 4,700 3.900 2,200 2,700 Car Wash Costs $ 10,800 $ 13,000 $ 11,600 $ 14,000 $ 16,000 $ 22,900 $ 22,000 $ 21,700 $ 22,600 $ 20.500 $10.500 $ 13,500 Exercise 5A-2 Part 1 Required: 1. Prepare a scattergraph plot. (Place car wash costs on the vertical axis and rental returns on the horizontal axis)

Answer 1

$30,000-1 $25000- $20,000 car wash costo $15000-7 $10.000 45000/ 1000 2000 3000 4000 5000 6600 5000 Rental Returns

Here vertical Axis - Car wash costs and Horizontal Axis - Rental returns