Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,483 per unit and then sells them to retail customers for an average price of $3,100 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$967 per month
Sales salaries and commissions	$4,794 per month, plus 3% of sales
Delivery of pianos to customers	$62 per piano sold
Utilities	$649 per month
Depreciation of sales facilities	$5,018 per month
Administrative:
Executive salaries	$13,457 per month
Insurance	$695 per month
Clerical	$2,460 per month, plus $36 per piano sold
Depreciation of office equipment	$921 per month