Toby wants to perform some CVP analysis on fertilizing jobs. On one representative job, she used 40 pounds of fertilizer that she bought in bulk ($1,000 for 2,000 pounds). It took her employee 1.5 hours to spread the fertilizer (she is paid $15/hour) with the motorized spreader. Toby paid $4,000 for the spreader three years ago and it is estimated to last 10 years. To get to the job site, a company truck and trailer was used (cost: $40,000 expected to last 10 years). This was the only use of the truck and trailer that day. Additional employee costs include 10% payroll tax and $730 per year in workers compensation insurance in total regardless of hours worked. You may assume straight-line deprecation and Toby charged this customer $84.80 to spread fertilizer on the representative job.

As an alternative to estimating costs with the information above, Toby has collected some cost data over the past year (costs and pounds of fertilizer spread by month see below). Please use both methods (account analysis and regression) to estimate variable and fixed costs to complete the analysis (one Excel sheet for comparison, one Excel sheet for the actual regression, in the same workbook please).

Use the same process as previous HW with an input area, and calculations done by formula within Excel (including cell references). Separate and label the parts of the calculation as Variable costs (VC), Contribution Margin (CM), Fixed Cost (FC) as you calculate the annual breakeven (BE) point for fertilizer (in pounds), how many pounds must be spread to earn a target profit of $1,000, and what is the margin of safety on that target profit (in units, sales dollars, and percent). How many pounds must be sold (spread) if Toby wants a margin of safety of 10% of sales? Please round all calculations to 2 decimals places.

Job	Unit	Cost
A	200	5360
B	150	5408
C	250	5510
D	450	5740
E	350	5550
F	300	5405
G	200	5305
H	250	5509
I	375	5458
J	425	5700
K	175	5300
L	100	5250

For the CVP calculations based on separating VC & FC with Regression Analysis, what is the quantity necessary, in pounds, for a target profit of $1,000?

For the CVP calculations based on separating VC & FC with Regression Analysis, what is the margin of safety, in sales dollars, for a target profit of $1,000?

For the CVP calculations based on separating VC & FC with Regression Analysis, what is the margin of safety, in PERCENT, for a target profit of $1,000?

For the CVP calculations based on separating VC & FC with Regression Analysis, what is the quantity necessary, in pounds, for a margin of safety of 10%?

For the CVP calculations based on separating VC & FC with Regression Analysis, what is the sales dollars necessary, for a margin of safety of 10%?