Almas 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 1,280 sessions. The company has invested $2,352,000 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.) $ 20.24

Direct labor $403.00

Variable overhead $ 50.00

Fixed overhead $1,217,280

Variable selling and administrative expenses $ 40.00

Fixed selling and administrative expenses $641,280

a) Determine the total cost per session.

Total Cost $______________________ per session

b) Calculate the markup percentage on the total cost per session.

Markup percentage _________________%per session

c) Calculate the target price per session

Target price $_________________________ per session