Part B Joey's Recording Studio rents studio time to musicians in 2-hour blocks. Each session...
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Part B Joey'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 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 as follows: Per Sessi Total S60 S400 S50 Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative Fixed selling and administrative S850,000 S40 S800,000 Required: (a) Detrmine 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
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