Scottsdale Fine Piano%u2019s purchases pianos from a well known manufacturer and sells them through their retail store. The Baby Grand Pianos sell, on average, for $2,500 each. The average cost of a piano from the manufacturer is $1,500. The costs that the Company incurs in a typical month are presented below.
Selling Costs:
Advertising $ 950 Per Month
Delivery of Pianos $ 60 Per Piano Sold
Sales Salaries and Commissions $ 4,800 Per Month, plus 4% of Sales
Utilities $ 650 Per Month
Depreciation on Sales Facilities $ 5,000 Per Month
Administrative Costs:
Executive Salaries $13,500 Per Month
Depreciation of Office Equipment $ 900 Per Month
Clerical $ 2,500 Per Month, plus $40 Piano Sold
Insurance $ 700 Per Month
During August, the Company sold and delivered 60 pianos
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