Classify costs along the value chain for a retailer (Learning Objective 2)

Suppose Radio Shack incurred the following costs at its Charleston, South Carolina, store:

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Research on whether store should sell satellite radio service $ 400 Payment to consultant for advise on location of new store. $2,500 Purchases of merchandise. 30,000 Freight-in 3,000 Rearranging store layout.. 750 Salespeople's salaries......... 4,000 Newspaper advertisements. 5,000 Customer complaint department. 800 Depreciation expense on delivery trucks..... 1,000 Requirements 1. Use the following format to classify each cost according to its place in the value chain. Customer R&D Design Purchases Marketing Distribution Service 2. Compute the total costs for each value-chain category. 3. How much are the total inventoriable product costs?