Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in…


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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 behavior of the company’s costs. One of those costs is the cost of washing cars. 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 costs of operating the car wash should be related to the number of rental returns. Accordingly, the following data have been compiled: Month Rental Returns Car Wash Costs January 2,320 $10,118 February 2,490 $12,518 March 2,687 $10,818 April 2,650 $12,700 May 3,500 $15,000 June 4,700 $21,200 July 5,237 $21,618 August 5,319 $19,270 September 4,518 $21,615 October 3,605 $17,418 November 2,406 $11,225 December 2,619 $12,018 Required: Using least-squares regression, estimate the fixed cost and variable cost elements of monthly car wash costs.(Round your fixed cost to the nearest dollar amount and the variable cost element to the nearest cent. Omit the $ sign in your response.) Fixed cost $ Variable cost $

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