ans in 2-hour blocks. Each session includes the use of the facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,030 sessions. The company has invested $2,357,155 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 $410 $55 $40 Total $973,350 $535,600
ans in 2-hour blocks. Each session includes the use of the facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,030 sessions. The company has invested $2,357,155 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 $410 $55 $40 Total $973,350 $535,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Oriole'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 1,030 sessions. The company
has invested $2,357,155 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
$410
$55
$40
Total
$973,350
$535,600
Transcribed Image Text:Calculate the target price per session. (Round answer to 2 decimal places, e.g. 10.50.)
Target price $
per session
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