Question: Using the information given below (in the Table) to perform the ABC analysis and answer the questions listed. The data in Table given below consists

Using the information given below (in the Table)Using the information given below (in the Table)Using the information given below (in the Table)

Using the information given below (in the Table) to perform the ABC analysis and answer the questions listed. The data in Table given below consists of the number of items sold, and cost per unit from 10 items A-J. Your job is to use the ABC method to classify the items by using the following calculation steps and answer the questions given below. Step 1: Using the equation given to find the annual usage value Annual usage value = (Annual number of items sold x cost per unit) Step 2: List them in the descending order based on annual usage value Step 3: Sum up the total number of items sold, annual usage value Step 4: Find out the cumulative percentage of product sold along with the percentage of annual usage value Step 5: Assign the items into the three A, B, and C categories (80:15:5) based on Pareto's 80:20 rule = Products Annual Number of Items Sold Annual Usage Value Cost per Unit Item A 5,000 100 Item B 1,500 30 Item C 700 20 Item D 600 40 Item E 500 30 Item F 700 50 Item G 600 15 Item H 10000 20 Item 1 600 40 Item 700 30 Product Cost Annual Number of Items Sold Annual Usage Value % Annual usage value % Annual item sold S per Unit Total 1. Listed the items the three categories. a. Category A b. Category B c. Category C 2. How many percent that items in A, B and C categories were generated? a. How many percent of categories A? (% annual usage value) b. How many percent of categories B? (% annual usage value) c. How many percent of categories C? (% annual usage value) 3. How much usual value in each category? a. The total annual usage value in category A? b. Total annual usage value in category B? C. The total annual usage value in category C

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