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

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Answer #1

Solution a:

Administrative Costs 683200
/ Total Users 24400
Pre-determined overhead rate 28.00 Per user

Solution b:

Toot! Tix Total
Revenue 1400000 1120000 2520000
Less: costs
Administrative costs ($28*Users) 232400 450800 683200
Engineering costs 367250 486750 854000
Profit 800350 182450 982800
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