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Ivanhoe's Recording Studio rents studio time to musicians in two - hour blocks. Each session includes the use of the studio facilities, a digital recording

Ivanhoe's Recording Studio rents studio time to musicians in two-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 1,200 sessions. The
company has invested $2,096,160 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as
follows:
(a)
Determine the total cost per session.
Total cost per sessionIvanhoe's Recording Studio rents studio time to musicians in two-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 1,200 sessions. The company has invested $2,096,160 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows:
Direct materials (tapes, CDs, etc.)
Direct labour
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Per Session
$20
415
50
Total
$1,170,000
50
570,000
(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. PLEASE HELP ME WITH ALL SECTIONS
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