Scottsdale fine pianou2019s purchases pianos from a


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

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