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1. Company DA stores six items as identified in the table below. For each item the unit cost and the annual demand in units

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1. Company DA stores six items as identified in the table below. For each item the unit cost and the annual demand in units are reported. SKU Number Unit Cost ($) Annual Demand (Units) XX256 5.84 1,200 BB987 5.40 1,100 CC390 1.12 896 PP490 74.54 1,104 RR386 2.00 1,110 MM507 2.08 961 Using ABC analysis, determine which item(s) require a more careful inventory control and which item(s) would require a less attentive inventory control.

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