Classify costs along the value chain for a manufacturer (Learning Objectives 2, 3) Suppose the cell phone manufacturer Samsung Electronics provides the following information for its costs last month (in hundreds of thousands):

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Salaries of telephone salespeople.......... Depreciation on plant and equipment $ 5 Transmitters.... $61 65 Rearrange production process to accommodate new robot.. 2 Exterior case for phone. 6 Assembly-line workers' wages. 10 Salaries of scientists who developed new model... 12 Delivery expense to customers via UPS............ Technical customer support hotline.......... 3 7 1-800 (toll-free) line for customer orders....... 1 Requirements 1. Use the following format to classify each cost according to its place in the value chain. (Hint: You should have at least one cost in each value-chain function.) Production Design R&D of Products or Processes Direct Direct Materials Labor Manufacturing Overhead Marketing Customer Distribution Service 2. Compute the total costs for each value-chain category. 3. How much are the total inventoriable product costs? 4. How much are the total prime costs? 5. How much are the total conversion costs?