Social Media, Inc. (SMI) has two services for users, which connects professors with students who are looking for teaching services, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results.

	Toot!		TiX		Total
Users		13,700		20,600		34,300
Revenues	$	1,850,000	$	1,840,000	$	3,690,000
Engineering hours		9,575		7,575		17,150
Engineering cost	$	734,000	$	852,375	$	1,586,375
Administrative costs					$	1,269,100

Required:

a. 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?