E8-6B Cary Recording Studio rents studio time to musicians in 2-hour blocks. Each session in- cludes the use of the studio facilities, a digital recorded CD of the performance, and a profes- sional music producer/mixer. Anticipated annual volume is 1,000 sessions. "lhe company has in vested in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (tapes, CDs, etc) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Instructions (a) Determine the total cost per session. (b) Determine the desired ROI per session. Per Session S20 Total $950,000 $540,000 (c) Calculate the mark-up percentage on the total cost per session. (d) Calculate the target price per session.