13 Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,483 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $3,400 each. The selling and administrative costs that the company incurs in a typical month are presented below Cost Formula Costs Selling Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $945 per month $4,778 per month, plus 5% of sales $60 per piano sold $669 per month $4,923 per month Administrative Executive salaries Insurance Clerical Depreciation of office equipment $13,519 per month $720 per month $2,527 per month, plus $38 per piano sold $904 per month During August, Marwick's Pianos, Inc., sold and delivered 62 pianos