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Use the classification rule below to classify all the items in Table 1 A Items Typically, 20% of the items accounting for 80% of the
Use the classification rule below to classify all the items in Table 1 A Items Typically, 20% of the items accounting for 80% of the inventory value. B Items Typically, an additional 30% of the items accounting for 15% of the inventory value. C Items Typically, the remaining 50% of the items accounting for only 5% of the inventory value. Also, determine the annual usage cost of each item. Ocho Enterprises is performing an ABC analysis of its inventory of cat treats and runs the report shown in the following table. Which option lists an A a B, and a C item in that order? a) Item 90; Item 50; Item 140 b) Item 150; Item 110: Item 30 c) Item 100; Item 20; Item 10 d) Item 140; Item 110; Item 130 20 30 Table 1: Item Unit Value Annual Usage 10 $1.90 1466 $2.10 599 $18.60 163 40 $15.25 73 50 $12.35 2215 60 $5.70 196 70 $16.20 110 80 $4.25 535 90 $24.25 1880 100 $6.20 146 110 $4.70 980 120 $5.60 150 130 $6.20 164 140 $13.10 1962 150 $11.30 419
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