Perform an ABC Analysis on the Following Set of Products

question 16

Essay

Perform an ABC analysis on the following set of products.
$$\begin{array} { | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Annual } \\\text { Demand }\end{array} & \text { Unit Cost } \\\hline \text { A211 } & 1200 & \$ 9 \\\hline \text { B390 } & 100 & \$ 90 \\\hline \text { C003 } & 4500 & \$ 6 \\\hline \text { D100 } & 400 & \$ 150 \\\hline \text { E707 } & 35 & \$ 2000 \\\hline \text { F660 } & 250 & \$ 120 \\\hline \text { G473 } & 1000 & \$ 90 \\\hline \text { H921 } & 100 & \$ 75 \\\hline\end{array}$$

Calculate the opportunity cost of attending college considering various financial aspects.

Understand the concept of marginal cost in different contexts.

Differentiate between economic concepts and misconceptions.

Recognize the core concepts of economics: opportunity cost, marginalism, and efficient markets.

---

Definitions:

Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for those goods and services.

AS Curve

Short for Aggregate Supply Curve, it represents the total supply of goods and services that firms in an economy are willing to sell at a given price level.

Maximum Output Level

The highest level of output that a company can produce in a given period without increasing the input.

National Output

The total value of all goods and services produced by a country's economy over a specific time period.