determine the desired ROI per session

Blossom's Recording Studio rents studio time to musicians in two-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 $1,963,500 in the studio and expects a return on investment Of 20%. Budgeted costs for the coming year are as follows: Direct materials (tapes, CDs. etc.) Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Session Total S20 40 S925000 30 475.000