Roxy'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 1,300 sessions. The company has invested $2,043,600 in the studio and expects a return on investment of 20%. Budgeted costs for the coming year are as follows:

Per SessionTotalDirect materials (tapes, CDs, etc.)$25

Direct labour

415Variable overhead

40

Fixed overhead

$1,254,500Variable selling and administrative expenses

45Fixed selling and administrative expenses

617,500

Total cost per session 1965$

Determine the desired ROI per session.