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. You may assume an employee works 2,000 hours per year on various tasks (not exclusively on fertilizing) and straight-line deprecation. Toby currently charges her customers $2.12 per pound to spread fertilizer.

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).

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. 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	Units	Costs
A	200	5360
B	150	5408
C	250	5510
D	450	5704
E	350	5550
F	300	5405
G	200	5305
H	250	5509
I	375	5458
J	425	5700
K	175	5300
L	100	5250