Perform an ABC Analysis on the Following Set of Products

question 69

Essay

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

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Definitions:

Time Charge

A billing method where a service provider charges a client based on the amount of time spent on a particular task or project.

Time And Material Pricing

A pricing method where a project is billed based on the actual time spent and the materials used.

Body Shop

Typically refers to a repair shop specializing in the repair and finishing of automobile bodies.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's total cost.