Van Shack

Value Chain Cost Classification

Customer

R and D

Design

Purchases

Marketing

Distribution

Service

Part $2$Part $3$

Newspaper advertisements

$5,500$

Payment to consultant for advice on location of new store

$3,000$

Purchases of merchandise

$33,000$

Freight$-$in

$4,000$

Salespeople's salaries

$4,700$

Depreciation expense on delivery trucks

$1,900$

Research on selling satellite radio service

$600$

Customer Complaint Department

$500$

Rearranging store layout

$1,000$

Total

$$3,600$

$$1,000$

$$37,000$

$$10,200$

$$1,900$

$$500$

Part $4$

Requirement $3.$ What are total product$$ costs?

The total product costs are