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 1,000 sessions. The company has invested $2,316,000 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
Direct labor		$395
Variable overhead		$ 45
Fixed overhead					$945,000
Variable selling and administrative expenses		$ 35
Fixed selling and administrative expenses					$490,000

Determine the total cost per session.

Total cost

$Type your answer here

per session

Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 10.50.)

ROI

$Type your answer here

per session

Calculate the markup percentage on the total cost per session.

Markup percentage

Type your answer here

%

per session

Calculate the target price per session. (Round answer to 2 decimal places, e.g. 10.50.)

Target price

$Type your answer here

per session