Assume Tutors-R-Us allocates facility rent, custodial services, and utilities on the basis of square feet occupied and computer equipment depreciation on the basis of number of students. Advertising is not allocated. If students received 200 hours of mathematics tutoring in November 20x1, what will the total profit from mathematics tutoring be for the same period?
A) $10,000
B) $8,775
C) $8,488
D). $488

Question

Quizplus · Accepted Answer

The total profit is calculated by subtracting allocated costs and expenses from the revenue generated by mathematics tutoring. The allocation of facility rent, custodial services, and utilities is based on square feet, while computer equipment depreciation is based on the number of students. Advertising is not allocated. After performing these calculations, the profit is $8,488.

Assume Tutors-R-Us Allocates Facility Rent, Custodial Services, and Utilities on the Basis