Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who...

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Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring

business accounting

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Answer 1

Answer #1

a) Overhead rate

Engineering hour related administrative cost = 120000/16000 = 7.50 per hour

User related administrative cost = 360000/24000 = 15 per user

b) Calculate profit

	Toot	Tix
Engineering cost	240000	360000
Engineering hour related cost	75000	45000
User related administrative cost	135000	225000
Total Cost	450000	630000
Revenue	1200000	800000
Profit	750000	170000

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Answer 2

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