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Seltzer Inc produces a lime seltzer water- which is mostly a mixture of lime, water and salt along with a few special ingredients. Seltzer Inc
Seltzer Inc produces a lime seltzer water- which is mostly a mixture of lime, water and salt along with a few "special ingredients". Seltzer Inc incurs the following costs(in thousands): $1,670 $205 Lime syrup Costs of "cents-off" store coupons for customers Delivery truck drivers' wages Bottles $185 $1,010 Sales commission $460 $800 $150 Plant janitors' wages Customer hotline Depreciation on delivery trucks Plant utilities $286 $924 $2,850 1,105 $10 Depreciation on plant and equipment Payment for new "secret" recipe (hint: this is not Product Design) Salt (hint: note dollar amount here is very small) Replacing products with expired dates upon customer complaint Rearranging plant layout Seltzer water $22 $1,230 $1,300 Note: "Plant" is another term for "Factory". Required: 1. Compute the total costs for each value chain category (R&D, Design, Production, Marketing, Distribution, or Customer Service). 2. Breakdown the production costs into three subcategories: DM, DL, or MOH and give the total cost in each of those areas. 3. How much are the total inventoriable product costs
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