1 Clasaify each cost as to which category of the value chain

1. Clasaify each cost as to which category of the value chain i belongs (R&D;, Design, Purchases, Marketing. Distribution, or s 5,400 S 2,900 s 31,000 S 3,400 2. Compute the total costs for each value chain category 3. How mach are the total product costs? Payment to consultant for advice on location of now sore Purchases of merchandise Freight in Salespeople\'s salaries Depreciation expense on delivery trucks Research on whether store should sell satelite radio service Customer Complaint Department Print Done 5 1,800 5 450 s 650 S 850

Solution

Solution:

Total Product Cost = Purchases cost = $34,400

Truck Shack
Value Chain Cost Classification
Particulars	R&D	Design	Purchases	Marketing	Distribution	Customer Service
Newspaper Advertisement				$5,400.00
Payment to consultant for advice on location of new store	$2,900.00
Purchases of Merchandise			$31,000.00
Freight In			$3,400.00
Sales person salaries					$4,500.00
Depreciation Expense on Delivery Trucks					$1,800.00
Research on whether store should sell sattelite radio service	$450.00
Customer complaint department						$650.00
Rearranging store layout		$850.00
Total	$3,350.00	$850.00	$34,400.00	$5,400.00	$6,300.00	$650.00