18 12 Part B 13 Joey's Recording Studio rents studio time to musicians in 2-hour blocks. Each session 14 includes the use of the studio facilities, a digital recording of the performance, and a 15 professional music producer/mixer. Anticipated annual volume is 16,000 sessions. The 16 company has invested $8,000,000 in the studio and expects a return on investment (ROI) 17 of 15%. Budgeted costs for the coming year as follows: Per Session Total 19 Direct materials $190 20 Direct labor $110 21 Variable overhead $85 22 Fixed overhead $3,300,000 23 Variable selling and administrative $75 24 Fixed selling and administrative $1,340,000 25 26 27 Required: 28 (a) Determine the total cost per session 29 (1) Determine the desired ROI per session. 30 (c) Calculate the mark-up percentage on the total cost per session. 31 (d) Calculate the target price per session. 32