A Canadian biopharmaceutical company incurs the following costs:

$($Click the icon to view the costs.$)$

Requirement

Classify each of the cost items $(1-8)$ as one of the business functions of the value chain.

Cost Item

Cost of redesigning blister packs to make drug containers more tamper$-$proof.

Cost of videos sent to doctors to promote sales of a new drug

Cost of a toll$-$free telephone line used for customer inquiries about usage, side effects of

drugs, and so on$.$

Equipment purchased by a scientist to conduct experiments on drugs awaiting approval

by the government.

Payment to actors in an infomercial to be shown on television promoting Visudyne, a

new treatment for age$-$related progressive blindness.

Labour costs of workers in the packaging area of a production facility.

Bonus paid to a salesperson for exceeding a monthly sales quota.

Cost of the Purolator courier services to deliver drugs to hospitals

Value Chain Business Function

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