Determine the total unit cost per session Total unit cost per session: S Determine the desired ROI per session. Desired ROI per session Calculate the mark-up percentage on the total unit cost per session. (Round answer to 2 decimal places, eg 20.57%)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Determine the total unit cost per session.
Total unit cost per session: $
Determine the desired ROI per session.
Desired ROI per session 5
Calculate the mark-up percentage on the total unit cost per session. (Round answer to 2 decimal places, eg 20.57%J
Mark-up percentage on the total unit cost per session
Calculate the target selling price per session.
Target selling price per session 5
Transcribed Image Text:Determine the total unit cost per session. Total unit cost per session: $ Determine the desired ROI per session. Desired ROI per session 5 Calculate the mark-up percentage on the total unit cost per session. (Round answer to 2 decimal places, eg 20.57%J Mark-up percentage on the total unit cost per session Calculate the target selling price per session. Target selling price per session 5
Sunland'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 $1.880,000 in the studio and expects a return on investment (ROI) of 15%. Budgeted costs for the coming year
are as follows:
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Determine the total unit cost per session
Total unit cost per session
5
Per Session
560
$299
$50
$40
Total
5799.000
$752,000
Transcribed Image Text:Sunland'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 $1.880,000 in the studio and expects a return on investment (ROI) of 15%. Budgeted costs for the coming year are as follows: Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Determine the total unit cost per session Total unit cost per session 5 Per Session 560 $299 $50 $40 Total 5799.000 $752,000
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