Value chain and classification of costs, computer company. Apple Computer incurs the following costs:

a. Electricity costs for the plant assembling the Macintosh computer line of products.

b. Transportation costs for shipping Macintosh software to a retail chain.

c. Payment to David Kelley Designs for design of the Powerbook carrying case.

d. Salary of computer scientist working on the next generation of minicomputers.

e. Cost of Apple employee's visit to a major customer to illustrate Apple's ability to intercon- nect with other computers.

f. Salary of the president of Apple Computer.

g. Payment to television station for running Apple advertisements.

h. Cost of cables purchased from outside supplier to be used with the Macintosh printer.

Required Classify each of the cost items (a-h) into one of the parts of the value chain shown in Exhibit 1-1

(p. 3)