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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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
Calculate the target price per session. (Round answer to 2 decimal places, e.g. 10.50.) Target price $ per session
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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