Algonquin Corporation, a major producer of consumer electronics equipment, has decided to initiate a program to analyze the companys inventory requirements utilizing different inventory techniques. The first phase of this program consists of an ABC analysis of the companys product line shown in the table below.

Algonquin Corporation, a major producer of consumer electronics equipment, has decided to initiate a program to analyze the companys inventory requirements utilizing different inventory techniques. The first phase of this program consists of an ABC analysis of the companys product line shown in the table below.

a) Perform ABC analysis based on the criterion of annual dollar revenue. b) Perform ABC analysis based on annual profit. c) For both parts a and b, explain your reasoning to come up with the cutoff level

a) Perform ABC analysis based on the criterion of annual dollar revenue. b) Perform ABC analysis based on annual profit. c) For both parts a and b, explain your reasoning to come up with the cutoff level

\begin{tabular}{cccc} Item Code & UnitsSold & PriceperUnit & ProfitperUnit \\ \hline SR101 & 15000 & 250 & 50.50 \\ SR103 & 750 & 1500 & 330.00 \\ SR105 & 1600 & 600 & 90.00 \\ SR201 & 45 & 2250 & 877.50 \\ SR203 & 10 & 3500 & 1750.00 \\ SR205 & 9250 & 500 & 125.00 \\ SR301 & 700 & 650 & 195.00 \\ SR303 & 550 & 700 & 196.00 \\ SR305 & 3000 & 920 & 303.60 \\ SR500 & 100 & 1100 & 440.00 \end{tabular}