4-3 Ralph Janaro simply does not have time to analyze all the items in his company's inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. IDENTIFICATION CODE XX1 B66 UNIT COST (S) DEMAND IN UNITS 5.84 1,200 5.40 1,110 3CPO 1.12 896 33CP 74.54 988 R2D2 RMS 4.80 2.08 1,257 961 Find the total amount spent on each item during the year. What is the total investment for all these? Find the percentage of the total investment in inventory that is spent on each item. Based on the percentages in part (b), which item(s) would be classified in categories A, B, and C using ABC analysis? Which item(s) should Ralph most carefully control using quantitative techniques? How low would the demand for 33CP have to before it change to a different category? 4-4 The marginal loss on Washington Reds, a brand of apples from the state of Washington, is $40 per case. The marginal profit is $15 per case. During the past year, the mean sales of Washington Reds in cases was 41,000 cases, and the standard deviation was 4,480. How many cases of Washington Reds should be brought to market? Assume that sales follow a normal distribution.