Develop an ABC classification on the 10 items below. Answer question 16.

Item # Demand/year Price/unit

1 9000 $6

2 200 4

3 200 12

4 1100 2

5 1000 2

6 500 5

7 100 10

8 3000 1

9 2500 1

10 4000 19

15. Items that will be classified as A items include:

A) 1, 3, 4, and 5 B) 3 and 4 C) 1 and 5 D) 1 and 10 E) 10 only

16) Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2.5 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

A) 10.00 B) 12.50 C) 42.00 D) 4.16 E) 20.00