Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A growing online retailer sells thousands of items yet has has one specialty product category with just 30 items. They want to classify these thirty

A growing online retailer sells thousands of items yet has has one specialty product category with just 30 items. They want to classify these thirty items according to the annual dollar volume (revenue) generated by each item. The table below lists each item number, Annual Sales (in units), and Price per unit:

 

    
Item #Annual SalesPrice 
12,032$15.99 
2138$4.99 
38,006$111.15 
41,512$25.37 
51,108$4.55 
61,403$24.05 
71,601$20.59 
89,918$162.93 
92,336$20.97 
10483$14.47 
11644$40.13 
121,953$7.85 
13746$18.31 
143,189$31.27 
156,674$63.43 
1618,441$49.75 
174,064$163.19 
18840$12.81 
191,634$28.01 
202,484$28.03 
212,530$13.25 
223,618$48.37 
2317,023$69.25 
241,193$17.27 
255,674$75.55 
261,802$52.57 
27592$18.53 
281,432$20.15 
291,322$27.07 
30258$7.15 
    
Which item in the table above has the highest annual dollar volume? In the answer field below, write the ITEM # that corresponds to your answer. Do not put a period after the number.   
    
What is the annual dollar volume for the item you selected in the previous question? (Display your answer to the nearest whole number.)   
    
Suppose that the "A" items constitute up to 75 percent of the annual dollar volume of all the parts in the list. How many "A" items should there be?   
    
Suppose the "B" items are for the next 20 percent of annual dollar volume and that the "C" items are for the remaining 5 percent of annual dollar volume. How many "C" items should there be?   
    
    
    
    
    
 

Step by Step Solution

3.39 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

To find the answers to the questions well first calculate the annual dollar volume for each item then use this information to determine the required n... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

More Books

Students also viewed these General Management questions

Question

Does log 81 (2401) = log 3 (7)? Verify the claim algebraically.

Answered: 1 week ago

Question

What are the four major behavioral considerations in MACS design?

Answered: 1 week ago