Van Shack Value Chain Cost Classification Customer R and D Design Purchases Marketing Distribution…

Van Shack Value Chain Cost Classification
Customer R and D Design Purchases Marketing Distribution Service
Part 2 Part 3
Cost Item
Amount
Newspaper advertisements
5 , 5 0 0
Payment to consultant for advice on location of new store
3 , 0 0 0
Purchases of merchandise
3 3 , 0 0 0
Freight – in
4 , 0 0 0
Salespeople’s salaries
4 , 7 0 0
Depreciation expense on delivery trucks
1 , 9 0 0
Research on selling satellite radio service
6 0 0
Customer Complaint Department
5 0 0
Rearranging store layout
1 , 0 0 0
Total
$ 3 , 6 0 0 $ 1 , 0 0 0 $ 3 7 , 0 0 0 $ 1 0 , 2 0 0 $ 1 , 9 0 0 $ 5 0 0
Part 4 Requirement 3 . What are total product ​ costs? The total product costs are