Concord S Recording Studio Rents Studio Time To Musicians In 2 Hour Blocks Each Session Includes The Use Of The Studio 1 (78.59 KiB) Viewed 9 times
Concord'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 1,180 sessions. The company has invested $2,336,400 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Session $20 $400 $55 $45 Total $1,121,000 $601,800
Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 10.50.) ROI $ per session
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