Alma'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 $1000 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: Direct materials: $20 per session Direct labor $400 Variable overhead $50 Fixed overhead (total) $950,000 Variable selling and administrative expenses $40 Fixed selling and administrative expenses $500,000 Instructions: a) Determine the total cost per session; b) Determine the desired ROI per session; c) Calculate the markup percentage on the total cost per session; d) Calculate the target price per session