David Alexander has compiled the following table of six items in inventory at Angelo Products, along with the unit cost and the annual demand in units:

Use ABC analysis to determine which item(s) should be carefully controlled using a quantitative inventory technique and which item(s) should not be closely controlled.

Transcribed Image Text:

IDENTIFICATION CODE UNIT COST ($) XX1 5.84 ANNUAL DEMAND (UNITS) 1,200 B66 5.40 1,110 3CPO 1.12 896 33CP 74.54 1,104 R2D2 2.00 1,110 RMS 2.08 961