Social Media, Inc. (SMI), has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year,

SMI expects the following results.

Requireda. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs.b. Based on the rates computed in requirement (a), what is the profit for each service?

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Toot! TiX Total Users 24,000 9,000 15,000 $ 1,200,000 $800,000 $2,000,000 Revenues Engineering hours Engineering cost Administrative costs 10,000 16,000 6,000 $ 600,000 $360,000 $ 240,000 $ 480,000