Sheridans 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 1,200sessions. The company has invested $1,995,840 in the studio and expects a return on investment of 25%. Budgeted costs for the coming year are as follows:

		Per Session		Total
	Direct materials (tapes, CDs, etc.)	$20
	Direct labour	425
	Variable overhead	60
	Fixed overhead			$1,134,000
	Variable selling and administrative expenses	45
	Fixed selling and administrative expenses			582,000

(a)

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Your answer is correct.

Determine the total cost per session.

Total cost per session

$enter the total cost per session in dollars

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(b)

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Your answer is incorrect.

Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 15.25.)

Desired ROI per session

$enter the desired return on investment per session in dollars rounded to 2 decimal places