d. Compute the target selling price. E21.6 (LO 2), AP Service 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 pro- fessional music producer/mixer. Anticipated annual volume is 1,000 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 Direct labor $400 Variable overhead $ 50 Fixed overhead $950,000 Variable selling and administrative expenses $ 40 Fixed selling and administrative expenses $500,000