Suppose Truck Shack incurred the following costs at its Philadelphia, Pennsylvania, store.

Requirements
1. Classify each cost as to which category of the value chain it belongs (R&D, Design, Purchases, Marketing, Distribution, Customer Service).
2. Compute the total costs for each value chain category.
3. What are total product costs?
4. What are total period costs?

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Newspaper advertisements.. Payment to consultant for advice on location of new store. Purchases of merchandise.. Freight-in.............. Salespeople's salaries...... Depreciation expense on delivery trucks.. Research on whether store should sell satellite radio service... Customer Complaint Department....... Rearrangement of store layout. $ 5,300 $ 2,400 $ 31,000 $ 3,600 $ 4,900 $ 1,400 $ 500 $ 900 $ 600