Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,493 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,500 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs Selling Cost Formula $944 per month $4,825 per month, plus 3% of sales $60 per piano sold $632 per month $5,004 per month Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative Executive salaries nsurance Clerical Depreciation of office equipment $13,484 per month $710 per month $2,536 per month, plus $41 per piano sold $877 per month