Question

[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 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 5,500 4,700 4,000 2,200 2,800 Car Wash Costs $ 11,000 $ 13, 100 $ 11,800 $ 14,300 $ 16,200 $ 23,300 $ 22,200 $ 22,200 $ 22,800 $ 21,100 $ 10,700 $ 14,200 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

Answer 1

У ху 2,400$l.ooo 5, 76 оооо 2,500 3,100 16.250,000 2, too.goo a290.000 e, Ooo Iь, ооч, ооо оор 9,6ool [6, 2poll2 960,ооо 5,000 23. Зор 25.990 доо. 5,5ool 22,20 до 250,000 550022 20232, 256 оор Ц.Тоо 22,8022 2. Ооо оор L,000 21. Гоо |16.Ооо,000 2200 10,1ool 4, 40,000 2.8 oo 14, 2оо 2,8 ho, Op3 26, 400,000 32, 35оодо З!, Goooo 2. поэ, орон 5, 320,000 1 : 6,500,000 122 100,000 122, Jo o o oo | 1.01, 160, ООО su, цор 000 23, Sчо, ооо 29, 260,оор 43,9 оо 202,7оо 126,94 о, ооо 807,290,ооо 12 из, под Ey = 202, 1 до a2 : tas 990,000 ху 2 go7,10,ооо

With the above information, can find the value of a sf > Computation of variable cost per unit (b) be n({sy) -({x) (Ey) on osa 2) -(8x)2 12(807,790,000)-(43,900](202,700 12 (176,990,000) - (43,900)? 9,693,480,000 8,898,539000 2,123,880,000 -1,927,2/2000 794,950,ooo 1196, 670,000 U 4.4.0420 Per yout

value of variable cost per unit (a) will put in fire ca cost formula to find out (a). cie. total fined cost. ) Computation of Teteel fized cost c92 a= (Ey)- b (ex) รา ( 202, 700 – 4.0420 (43,900 12 202,700 – 177,443 12 = 25,257 12 = $2,104.75 Fizced cost per month = $2,105 Variable cost per unit = $ 4.04