Reference no: EM132561747

NT Department of Health rents their facilities to professional health workers for training sessions. Duration of each session is two hours. Anticipated annual volume is 1,000 sessions. The Health Department has invested $2,410,000 in their facility and expects a return on investment (ROI) of 22%. Budgeted costs for the coming year are shown in the table below:

Per Training Session                       Total

Direct Materials                            $19

Direct Labor                                 $410

Variable overhead                                $51

Fixed overhead                                     $930,000

Variable selling and administrative expenses     $38

Fixed selling and administrative expenses        $510,000

Required:

Question 1. Determine the total cost per training session

Question 2. Determine the desired ROI per training session

Question 3. Calculate the markup percentage on the total cost per training session

Question 4. Calculate the target price per training session