Exercise 8-6, a1

Alma's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a total recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1, 230 sessions. The company has invested $2, 337,000 in the studio and expects a return on investment (ROI) of 19%. Budgeted costs for the coming year are as follows. Determine the total cost per session