Question: Part number Annual unit usage Unit cost $ Annual $ usage 1 200 $10 $2,000 2 17 000 $4 $68,000 3 60 000 $6 $360,000

Part number Annual unit usage Unit cost $ Annual $ usage
1 200 $10 $2,000
2 17 000 $4 $68,000
3 60 000 $6 $360,000
4 15 000 $15 $225,000
5 1500 $10 $15,000
6 120 $50 $6,000
7 25 000 $2 $50,000
8 700 $3 $2,100
9 25 000 $1 $25,000
10 7500 $1 $7,500
Total $760,600

Analyze the following data to produce an ABC classification based on annual dollar usage, similar to the example presented in the lecture. You should utilize the data in the attached excel and fill in the other sheet with the values you calculated.

Write down the cumulative % of dollar usage for "A" category and "B" category items. C items are not asked here, but you need to fill them also in to the excel you are returning.

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