28. Joey's 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. Anticipated annual volume is 1,000 sessions. The company has invested $2,000,000 in the studio and expects a return on investment (ROI) of 16.5%. Budgeted costs for the coming year are as follows. Per Session Total $60 $400 $50 Direct materials (tapes, CDs, etc) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $850,000 $40 $800,000 Instructions (a) Determine the total cost per session. (b) Determine the desired ROI per session. (c) Calculate the mark-up percentage on the total cost per session. (d) Calculate the target price per session