EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. 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 2,310 $ 10,113 
February 2,453 $ 12,691 
March 2,641 $ 10,905 
April 2,874 $ 12,949 
May 3,540 $ 15,334 
June 4,861 $ 21,455 
July 5,432 $ 21,270 
August 5,268 $ 19,930 
September 4,628 $ 21,860 
October 3,720 $ 18,383 
November 2,106 $ 9,830 
December 2,495 $ 11,081 

Required:
Using least-squares regression, estimate the fixed cost and variable cost elements of monthly car wash costs. (Round the "Variable cost per unit" to 2 decimal places and "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)

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    • additional_ref_for_ez_rental.docx
    • ez_rental_car.xlsx