19. East Hills Company makes and sells scooters. East Hills incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income Statement Materials cost ($10 per unit) Depreciation on manufacturing equipment Company president's salary Salaries of administrative personnel Labor cost (54 per unit) Research and development costs Advertising costs (150,000 per year) Real estate taxes on factory Shipping and handling ($0.15 per unit) Inspection costs East Hills can currently purchase the scooters it makes from another company. If the company purchases the scooters, East Hills would still continue to use its own logo, sales staff, and advertising programs. Which of the following costs would be classified as a facility-level cost? A. Company president's salary B. Shipping and handling C. Materials cost D. Research and development costs