Dancing in Starlight provides event planning services, offering two event packages (Flash and 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 Starlight determines 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 Starlights capacity is limited by its available labour hours, where only the 12,000 budgeted labour hours are available each year. Flash requires 150 labour hours per event and Extravagant requires 200 labour hours per event. Every year Dancing in Starlight receives, on average, 60 orders for Flash and 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 Starlight does not provide customised services and only offers the two event packages. Determine how many instances of Flash and Extravagant should be provided to maximise profitability.