Suppose the cell phone manufacturer Orange Electronics provides the following information for its costs last month (in millions): (Click the icon to view the costs.) Read the requirements Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category Enter amounts in millions. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Orange Electronics Value Chain Cost Classification Direct Materials Production Direct Manufacturing Labor Overhead Rand D Design Marketing Distribution Customer Service Cost Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly line workers wages Technical support hotline Depreciation on plant and equipment Rearrange production process 1-800 (toll-free) line for customer orders Scientists' salaries i Requirements Data Table $ 11 3 60 1. Classify each of these costs according to its place in the value chain (R&D, Design, Production, Marketing, Distribution, or Customer Service). (Hint: You should have at least one cost in each value chain function.) 2. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. 3. Compute the total costs for each value chain category. 4. How much are the total product costs? 5. How much are the total prime costs? 6. How much are the total conversion costs? 7 11 Delivery expense to customers via UPS Salaries of salespeople Chipset (the set of chips used on a phone's motherboard) Exterior case for phone Assembly-line workers' wages Technical customer support hotline Depreciation on plant and equipment Rearrangement of production process to accommodate new robot 1-800 (toll-free) line for customer orders Salaries of scientists who developed new model A A A A A A A A $ 6 65 2 Print Done 2 $ 13 Suppose the cell phone manufacturer Orange Electronics provides the following information for its costs last month (in millions): E: (Click the icon to view the costs.) Read the requirements. wages Technical support hotline Depreciation on plant and equipment Rearrange production process 1-800 (toll-free) line for customer orders Scientists' salaries Total costs Production Direct Manufacturing Labor Overhead Direct Materials Customer Service Cost R and D Design Marketing Distribution Requirement 4. How much are the total product costs? (Enter amounts in millions.) The total product costs are million Requirement 5. How much are the total prime costs? (Enter amounts in millions.) The total prime costs are million. Requirement 6. How much are the total conversion costs? (Enter amounts in millions.) The total conversion costs are million
