Part A tone Company is considering introducing a new line of pagers, targeting the preteen population. Stone believes that if the pagers can be priced competitively ats45 approximately 300,000 units can be sold. The controller has determined that an a investment in new equipment totaling$4,000,000 will be required. Stone minimum rate of return of 16% on all investments. Required: Compute the target cost per unit ofthe pager. Part B Joey's Recording studio rents studio time to musicians 2-hour and a includes the use of the studio facilities, a digital recording of the performance, professional music producer/mixer Anticipated annual volume is 1,000 sessions. The company has invested $2,000,000 in the studio and expects a return on investment (ROI) of 16.5%. Budgeted costs for the coming year are as follows. Per Session Direct materials (tapes, CDs, etc) $400 Direct labor $50 Variable overhead $850,000 Fixed overhead Variable selling and administrative expenses $40 $800,000 Fixed selling and administrative expenses Required: (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. Part C silver spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2016: Time Material Technicians' wages and benefits S500,000 Parts manager's salary and benefits 72,000 office manager's salary and benefits 112,000 18,000 Other overhead 48,000 135,000 Total budgeted costs Silver Spoon has budgeted for 10,000 hours of technician time during the coming year. It desires a S54 profit margin per hour of labor and a 40% profit margin on parts. Silver Spoon estimates the total invoice cost of parts and materials in 2016 will be $500,000