Easton Company makes and sells scooters. Easton 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 $($$$4$ per unit$)$ Research and development costs

Advertising costs $($$$150,000$ per year$)$ Real estate taxes on factory

Shipping and handling $($$$0\mathrm{.}15$ per unit$)$ Inspection costs

Easton can currently purchase the scooters it makes from another company. If the company purchases the scooters, Easton 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?

Multiple Choice

Company president's salary

Shipping and handling

Materials cost

Inspection costs