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 1,030 sessions. The company has invested $2,357,155 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		$410
Variable overhead		$ 55
Fixed overhead					$973,350
Variable selling and administrative expenses		$ 40
Fixed selling and administrative expenses					$535,600

Determine the total cost per session.

Determine the desired ROI per session.

Calculate the markup percentage on the total cost per session.

Calculate the target price per session.