ABC ANALYSIS McKenzie Services is considering using ABC analysis to focus attention on its most critical inventory items. A random sample of 20 items has been taken. Rank the items and assign them to an A, B, or C class. The management has decided to use the annual dollar volume as the key figure to assess the product range. On the basis of this sample, does it appear that ABC analysis can help management identify the significant few items? Product Annual Volume Price Per Unit 1 1,480 6.10 2 1,680 0.15 3 10,120 0.20 4 3,520 0.40 5 3,830 9.50 6 4,368 0.25 7 4,180 0.45 8 3,590 0.90 9 4,820 0.70 10 6,000 0.02 11 1,900 1.01 12 2,980 4.20 13 1,050 0.30 14 1,100 0.44 15 710 31.60 16 4,700 0.38 Use the table below to perform ABC analysis. Sort the products from the highest to the lowest annual dollar volume 00001WN Product Annual Volume (#) Price Per Unit Annual Dollar Volume % of Number of Products in Stock Ratio of Annual Dollar Volume Cumulative Annual Dollar Volume Ratio Product Group