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ANNUAL SALE PRODUCT % of Ann UNITS SOLD % of Ann Units Sold Cumulative Cumulative % Ann Units % Annual Sold Rev Rank (ABC class)

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ANNUAL SALE PRODUCT % of Ann UNITS SOLD % of Ann Units Sold Cumulative Cumulative % Ann Units % Annual Sold Rev Rank (ABC class) based on Revenue Ann Rev Rev SR101 SR103 15,000 750 1,600 45 SR105 SR201 PRICE PER UNIT $250 $1,500 $600 $2,250 $3,500 $500 $650 $700 $920 $1,100 10 SR203 SR205 SR301 SR303 SR305 SR500 9,250 700 550 3,000 100 SALE ANNUAL UNITS PRICE PER % of Ann PRODUCT # % of Ann Units Sold Cumulative Cumulative % Ann Units % Annual Sold Rev Rank (ABC class) based on Volume SOLD Ann Rev Rev SR101 SR103 SR105 SR201 SR203 SR205 SR301 15,000 750 1,600 45 10 UNIT $250 $1,500 $600 $2,250 $3,500 $500 $650 $700 $920 $1,100 SR303 9,250 700 550 3,000 100 SR305 SR500 Mark N N N Question Assignment 1 Build an ABC Analysis based on Annual Revenue 2 Does this analysis follow the Pareto Principle (Yes / Somewhat / No)? Explain. 3 Build an ABC Analysis based on Annual Volume (Units Sold) 4 Does this analysis follow the Pareto Principle (Yes / Somewhat / No)? Explain. 5 Do the two Analyses result in the same ABC groupings? Explain. 2 2 10

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