Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,460 each. The average cost of a television from the manufacturer is $1,300. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Cost Formula $ 1,425 per month $ 44 per television sold $ 3,200 per month, plus 5% of sales $ 482 per month $ 3,690 per month $ 8,900 per month Depreciation of office equipment $ 900 per month Clerical $ Insurance 2,350 per month, plus $51 per television sold $ 675 per month Depreciation of sales facilities Administrative: Executive salaries