Alma's Recording Studio rents 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 $2,352,000 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows.
Per Session Total
Direct Material (CD,etc) $20
Direct Labor $400
Variable overhead $50
Fixed overhead $950,000
Variable selling and administrative expenses $40
Fixed selling and administrative expenses $500,000
(a) Determine the total cost per session
(b) Determine the desired ROI per session
(c) Calculate the markup percentage on the total cost per session.
(d) Calculate the target price per session
9 ASSESSMENT 1 Course Name BSB61315 Advanced Diploma of Marketing and Communication Subject/module Marketing Objectives 2 Assessment method Written...
Thanks so much for all the help and here is a tip.