Your manager asks you to perform ABC Analysis to increase the efficiency of your company. He provides following data related to hits, profit per unit, and total quantity sold in terms of each item; then asks an analysis based on hits, sales quantity, and total profit. Perform ABC Analysis for your company with A items = top 50%, B items = next 35%, C items are the remaining ones. Manager believes that profit made from a product is three times more important than sales volume of the product. (Assume A=5, B=3, and C=1). Explain reasons for a company to keep inventory.

ITEM	Hits	Profit Per Product	Quantity Sold Per Year
1	3	30	12
2	30	15	35
4	5	20	85
5	2	9	79
3	67	6	87
6	95	5	95
7	10	15	100
8	19	20	15
9	16	5	225
10	16	3	35