Answer: $203,700
Explanation:
Given that,
Assembly line workers' wages = $72,200
Caps for milk bottles = 3,600
Re configuring the assembly line = 125,600
Customer support hotline = 10,000
Delivery expenses = 20,700
Depreciation on factory equipment = 75,600
Plastic milk bottles = 52,300
Salaries of salespeople = 63,500
Salaries of research scientists = 70,500
Customer toll free order line = 6,800
The total cost of production category of the value chain:
= Assembly line workers wages + caps for milk bottle + depreciation on factory equipment + plastic milk bottles
= $72,200 + $3,600 + $75,600 + $52,300
= $203,700
