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 1,000 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. total

Direct materials (tapes, CDs, etc) (per session ) $60

Direct labor (per session ) $400

Variable overhead (per session ) $50

Fixed overhead (total)$850,000

Variable selling and administrative expenses (per session )$40

Fixed selling and administrative expenses (total)$800,000

A-

Determine the total cost per session

Total cost per session???

B-

Determine the desiered ROI per session

ROI ???? per session

C- Calculate the markup percentage on the total cost per session.