Answer Happy

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
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.)