Suppose Radio Shack incurred the following costs at its Charlotte, North Carolina, store.
Newspaper advertisements........................................................................................ $ 5,700
Payment to consultant for advice on location of new store...................................... $ 2,200
Purchases of merchandise......................................................................................... $ 32,000
Freight- in.................................................................................................................. $ 3,700
Salespeople’s salaries................................................................................................ $ 4,900
Depreciation expense on delivery trucks.................................................................. $ 1,800
Research on whether store should sell satellite radio service................................... $ 500
Customer Complaint Department............................................................................. $ 600
Rearranging store layout........................................................................................... $ 750

Requirements
1. Classify each cost as to which category of the value chain it belongs (R& D, Design, Purchases, Marketing, Distribution, Customer Service).
2. Compute the total costs for each value chain category.
3. How much are the total inventoriable product costs?