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Newspaper advertisements. $ 5,500 Payment to consultant for advice on location of new store ......$ 2,900 Purchases of merchandise.. $ 32,000 Freight-in..... $ 3,600 Salespeople's
Newspaper advertisements. $ 5,500 Payment to consultant for advice on location of new store ......$ 2,900 Purchases of merchandise.. $ 32,000 Freight-in..... $ 3,600 Salespeople's salaries $ 4,100 Depreciation expense on delivery trucks $ 1,000 Research on whether store should sell satellite radio service. 400 Customer Complaint Department $ 850 Rearranging store layout 700 $ $ 1. Classify each cost as to which category of the value chain it belongs (R&D, Design, Purchases, Marketing, Distribution, or Customer Service). 2. Compute the total costs for each value chain category. 3. What are total product costs? 4. What are total period costs? Suppose Auto Shack incurred the following costs at its Newark, New Jersey, store: (Click the icon to view the costs.) Read the fequirements Requirements 1 and 2. Classify each of these costs according to its place in the value chain, then calculate the total cost for each value chain category. (If an input field is not used in the table leave the input field empty; do not enter a zero.) Auto Shack Value Chain Cost Classification Customer R and D Design Purchases Marketing Distribution Service Newspaper advertisements Payment to consultant for advice on location of new store Purchases of merchandise Freight-in
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