DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks suffi cient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classifi cation. Here is a sample from the inventory records:

ITEM AVERAGE MONTHLY DEMAND PRICE PER UNIT ITEM AVERAGE MONTHLY DEMAND PRICE PER UNIT 1

2 3

4 5

700 200 2,000 1,100 4,000

$6.00 4.00 12.00 20.00 21.00 6

7 8

9 10 100 3,000 2,500 500 1,000 10.00 2.00 1.00 10.00 2.00 Develop an ABC classifi cation for these 10 items.