Gibson Guitars & Instruments, the current owner of Epiphone, one of the best guitar brands, is a leading producer of quality instruments based on their molds and designs. They have contracts with instrument manufacturers for an average cost of ?3,520 and then sell them to retail companies for an average price of ?5,950. During the month, Gibson Guitars & Instruments sold 80 Epiphones. The company's selling, general, and administrative (SG&A) costs related to the product line are presented below:

Selling: Advertising P3,000 per month Sales salaries and commissions P7,500 per month, plus 12.5% of sales Delivery costs to customers P250 per instrument sold Utilities P2,000 per month Depreciation of sales facilities P300 per month General & Administrative: Staff salaries P25,000 per month Insurance P2,000 per month Clerical P150 per month, plus P50 per instrument sold Depreciation of ofce equipment P120 per month