Calculate the markup percentage on the total cost per session. Mark-up percentage per session % Calculate the target price per session. (Round answer to 2 decimal places, eg. 15.25.)
Calculate the markup percentage on the total cost per session. Mark-up percentage per session % Calculate the target price per session. (Round answer to 2 decimal places, eg. 15.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Sheridan's Recording Studio rents studio time to musicians in two-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 1.200 sessions. The
company has invested $1.995,840 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as
follows:
Direct materials (tapes, CDs, etc.)
Direct labour
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Per Session
$20
425
60
45
Total
$1,134,000
582,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ab6b153-d778-420a-a12c-61a1be38c549%2F21387f68-14f9-41ef-a424-11b5a08b700c%2Fj1vba63_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sheridan's Recording Studio rents studio time to musicians in two-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 1.200 sessions. The
company has invested $1.995,840 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as
follows:
Direct materials (tapes, CDs, etc.)
Direct labour
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Per Session
$20
425
60
45
Total
$1,134,000
582,000
![Calculate the markup percentage on the total cost per session.
Mark-up percentage per session
%
Calculate the target price per session. (Round answer to 2 decimal places, e.g. 15.25.)
Target price per session $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ab6b153-d778-420a-a12c-61a1be38c549%2F21387f68-14f9-41ef-a424-11b5a08b700c%2Fo8u6bnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate the markup percentage on the total cost per session.
Mark-up percentage per session
%
Calculate the target price per session. (Round answer to 2 decimal places, e.g. 15.25.)
Target price per session $
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