1. Perform an ABC analysis for the data provided below. Clearly explain why you classified items as A, B, or C. (You may use the Excel template provided. Provide screen captures to show your work).

SKU Number	Annual Demand	Unit Cost
1	500	$68.12
2	750	$58.25
3	3500	$75.25
4	200	$53.14
5	1000	$26.33
6	1250	$4.52
7	250	$7.59
8	150	$3.19
9	8500	$2.98
10	6500	$4.27
11	1500	$9.00
12	3500	$13.57
13	1200	$15.40
14	1500	$14.60
15	2000	$35.80
16	1000	$17.30
17	2000	$51.75
18	450	$42.90
19	6000	$25.30
20	2500	$67.00

2. [15 points] An assistant manager of an Electronic device retailer is reviewing the costs associated with the store's best-selling computers. The data available follows.

Demand = 1800 units/year

Order cost = $250/order

Holding cost rate = 15% /year

Unit cost = $750

1. What is the Economic Order Quantity (EOQ)? Show all calculations to earn full credit.
2. What is the ordering cost? Show all calculations.
3. What is the holding cost? Show all calculations.
4. If the order quantity is 100 units, what is the total cost? How does it compare with the total cost for ordering EOQ?