Dancing in Starlightprovides event planning services, offering two event packages (Flashand Extravagant) and customised services for clients who want to design an event from scratch. Budgeted information relating to this accounting period is as follows:

Labour rate, including on-costs	$ 26
Annual labour hours	12,000
Annual overhead costs:
Material handling and storage	$ 120,000
Other overhead costs	$ 288,000
Annual cost of materials used	$ 600,000

For customised jobs, Dancing in Starlightdetermines the price using time and material pricing. A mark-up of $5 per hour on time charges and a 10% mark-up on total material charges are applied to all customised jobs.

Dancing in Starlight's capacity is limited by its available labour hours, where only the 12,000 budgeted labour hours are available each year. Flashrequires 150 labour hours per event and Extravagant requires 200 labour hours per event. Every year Dancing in Starlight receives, on average, 60 orders for Flashand 20 orders for Extravagant. Information relating to the two event packages are as follows:

	Flash	Extravagant
Event price	$ 30,000	$ 56,000
Variable costs	$ 28,200	$ 53,750

Required:

1. Calculate the price for a customised job that requires 60 labour hours and $20,000 material costs.
2. Suppose Dancing in Starlightdoes not provide customised services and only offers the two event packages. Determine how many instances of Flashand Extravagantshould be provided to maximise profitability.