1 - Normas Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. The anticipated annual volume is 1,190 sessions. The company has invested $2,356,200 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows.

		Per Session			Total
Direct materials (CDs, etc.)		$ 20
Direct labor		$415
Variable overhead		$ 50
Fixed overhead					$1,130,500
Variable selling and administrative expenses		$ 45
Fixed selling and administrative expenses					$595,000

Total cost?

ROI?

Markup percentage?

Target price?

2 - ABCCorporation produces microwave ovens. The following per unit cost information is available: direct materials $39, direct labor $30, variable manufacturing overhead $13, fixed manufacturing overhead $46, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30.60. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.)

Markup percentage ?