Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Managementwould like to better understand the variable and fixed portions of its car washing costs. The company operates its own carwash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to anothercustomer. 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:RentalCar WashMonthReturnsCostsJanuary2,400$ 10,500February2,500$ 12,900March2,700$ 11,300April2,900$ 13,500May3,600 $ 15,700June4,900$ 22,300July5,500$ 21,700August5,400 $ 20,900September4,700$ 22,300OctoberNovemberDecember3,800$ 19,6002,100$ 10,2002,600$ 12,500. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (RoundFixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)Fixed cost per monthVariable cost per rental return

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Description: Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Managementwould like to better understand the variable and fixed portions of its car washing costs. The company operates its own carwash

Fixed costs are costs that do not change when the production volume or output level changes. In…

Business

Accounting

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 Costs Rental Month January Returns February 2,400 2,500 $ 10,500 $ 12,900 March 2,700 $ 11,300 April 2,900 $ 13,500 May 3,600 $ 15,700 June 4,900 $ 22,300 July 5,500 $ 21,700 August 5,400 $ 20,900 September 4,700 $ 22,300 October 3,800 $ 19,600 November December 2,100 $ 10,200 2,600 $ 12,500 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

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 Costs Rental Month January Returns February 2,400 2,500 $ 10,500 $ 12,900 March 2,700 $ 11,300 April 2,900 $ 13,500 May 3,600 $ 15,700 June 4,900 $ 22,300 July 5,500 $ 21,700 August 5,400 $ 20,900 September 4,700 $ 22,300 October 3,800 $ 19,600 November December 2,100 $ 10,200 2,600 $ 12,500 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 3TP: Brindis Babysitting Center currently rents a 1200 sq foot facility for her 20-child facility. Her...

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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: Month Rental Returns Car Wash Costs January 2,500 $ 11,600 February 2,500 $ 13,400 March 2,800 $ 12,400 April 3,100 $ 15,200 May 3,700 $ 16,800 June 5,200 $ 24,500 July 5,600 $ 22,800 August 5,600 $ 23,700 September 4,800 $ 23,400 October 4,200 $ 22,900 November 2,300 $ 11,300 December 3,000 $ 16,300 2. Using least-squares regression, estimate the variable cost…
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