Question

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 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 cont per rental return

Answer 1

XI H. 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in > Calibri - 11 A A Wrap Text General * Cut ED Copy Format Painter H Insert Delete Format Paste BI U - А E Merge & Center - $ % 4.0 .00 00 0 Conditional Format as Cell Formatting Table Styles Styles Σ AutoSum - Z Fill- Sort & Find & Clear Filter - Select Editing Clipboard Font Г Alignment Number Cells A H16 X E F G H 1 J K L M N. o P O R A B с C D 1 Month Rental returns Car Wash Costs 2 1 2,400 $ 11,000 3 2 2,500 $ 13,100 4 3 2,700 $ 11,800 5 4 3,000 $ 14,300 6 5 3,600 $ 16,200 7 6 5,000 $ 23,300 8 7 5,500 $ 22,200 9 8 5,500 $ 22,200 10 9 4,700 $ 22,800 11 10 4,000 $ 21,100 12 11 2,200 $ 10,700 13 12 2,800 $ 14,200 14 Fixed cost per month 2,751 15 Formula used =INTERCEPT(C2:C13,B2:313) 16 17 Variable cost per rental return $ 3.87 18 Formula used =SLOPE(C2:C13,B2:B13) 19 20 21 22 23 Activate Windows Go to Settings to activate Windows. Sheet148 Sheet149 Sheet150 Sheet151 Sheet152 Sheet153 Sheet154 Sheet155 + READY CIRCULAR REFERENCES 3 1 + 100% Search the web and Windows O ENG IN 09:17 23-09-20