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Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,519 each from
Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,519 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $2,200 each. The selling and administrative costs that the company incurs in a typical month are presented below Cost Formula Selling Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $963 per month $4,828 per month, plus 5% of sales $61 per piano sold $637 per month $4,994 per month Administrative Executive salaries Insurance Clerical Depreciation of office equipment $13,489 per month $713 per month $2,523 per month, plus $35 per piano sold $943 per month During August, Marwick's Pianos, Inc., sold and delivered 58 pianos
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