Bridgeports 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 1,230 sessions. The company has invested $2,410,800 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		$405
Variable overhead		$ 55
Fixed overhead					$1,168,500
Variable selling and administrative expenses		$ 35
Fixed selling and administrative expenses					$608,850

(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=