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Marwick s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $ 1 , 4 8 8 per unit and then sells

Marwicks Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,488 per unit and then sells them to retail customers for an average price of $2,300 each. The companys selling and administrative costs for a typical month are presented below:
Costs Cost Formula
Selling:
Advertising $945 per month
Sales salaries and commissions $4,822 per month, plus 6% of sales
Delivery of pianos to customers $61 per piano sold
Utilities $636 per month
Depreciation of sales facilities $5,063 per month
Administrative:
Executive salaries $13,467 per month
Insurance $686 per month
Clerical $2,546 per month, plus $37 per piano sold
Depreciation of office equipment $927 per month
During August, Marwicks Pianos, Incorporated, sold and delivered 57 pianos.
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