Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,497 each from the manufacturer. Marwicks 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:

Costs	Cost Formula
Selling:
Advertising	$944 per month
Sales salaries and commissions	$4,821 per month, plus 5% of sales
Delivery of pianos to customers	$62 per piano sold
Utilities	$652 per month
Depreciation of sales facilities	$4,977 per month
Administrative:
Executive salaries	$13,401 per month
Insurance	$690 per month
Clerical	$2,529 per month, plus $41 per piano sold
Depreciation of office equipment	$917 per month

During August, Marwicks Pianos, Inc., sold and delivered 56 pianos.

Marwick's Pianos, Inc Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses