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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, $1,495 each from

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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, $1,495 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $3,000 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 $931 per month $4,804 per month, plus 5% of sales $59 per piano sold $634 per month $5,003 per month Administrative Executive salaries Insurance Clerical Depreciation of office equipment $13,455 per month $691 per month $2,542 per month, plus $39 per piano sold $879 per month During August, Marwick's Pianos, Inc., sold and delivered 65 pianos

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