Business, 16.03.2020 23:15 vargass

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. Toot! TiX Total Users 7,700 15,600 23,300 Revenues $ 1,350,000 $ 1,040,000 $ 2,390,000 Engineering hours 6,825 4,825 11,650 Engineering cost $ 333,375 $ 453,000 $ 786,375 Administrative costs $ 629,100 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

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Answer from: BreBreDoeCCx

1. Predetermined overhead rate of admin costs - $ 27 per user.

2. Profit for TOOT Service - $ 808,725

Profit for TIX Service - $ 165,800

Explanation:

Computation of predetermined overhead rate

Product TOOT 7,700 users

Product TIX 15,600 users

Total users 23,300 users

Predetermined overhead rate per user $ 629,100 / 23,300 = $ 27 per user

Allocation of Admin costs - TOOT - 7,700/ 23.300 * $ 629,100 = $ 207,900

Allocation of Admin costs - TIX - 15,600/ 23,300 * $ 629,100 = $ 421,200

2. Computation of profit per service

TOOT TIX

$ $

Revenues 1,350,000 1.040.000

Less: Engineering costs ( 333,375 ) ( 453,000 )

Less: Allocation Admin costs ( 207,900 ) ( 421,200)

Profit 808,725 165,800

Answer from: Quest

The answer is letter a

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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