Social Media, Inc. (SMI) has two services for users. Toot!, which connects people with students who are looking for 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		6,200		14,900		21,100
Revenues	$	1,250,000	$	880,000	$	2,130,000
Engineering hours		6,275		4,275		10,550
Engineering cost	$	269,750	$	389,625	$	659,375
Administrative costs					$	527,500

Required:

a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the engineering cost to allocate administrative costs.

b. Based on the rates computed in requirement (a), what is the profit for each service?