. With the information in the table below, determine a logical breakdown for an
ID: 451878 • Letter: #
Question
. With the information in the table below, determine a logical breakdown for an ABC classification based on cost*volume. Be sure to “CLEARLY” show which parts are “A”, “B”, or “C’s” by list below or off on the right of table. (10 pts)
Stock Keeping Unit Number
Cost per unit
Annual Volume
Cost-Volume
AA1234
$1.20
5000
AC1444
$5.20
1000
AF7232
$145
1000
CB7111
$0.88
28000
CG5665
$1.15
220000
FD2222
$0.35
12000
GH4315
$0.65
8000
HH6789
$75
300
SR7130
$18
1000
SR7900
$11
2300
XX5455
$45
5000
XY6000
$65
130
ZZ3211
$300
20
ZZ7600
$450
80
Stock Keeping Unit Number
Cost per unit
Annual Volume
Cost-Volume
AA1234
$1.20
5000
AC1444
$5.20
1000
AF7232
$145
1000
CB7111
$0.88
28000
CG5665
$1.15
220000
FD2222
$0.35
12000
GH4315
$0.65
8000
HH6789
$75
300
SR7130
$18
1000
SR7900
$11
2300
XX5455
$45
5000
XY6000
$65
130
ZZ3211
$300
20
ZZ7600
$450
80
Explanation / Answer
First of all the cost - volume is going to be calculated, then cost volume is going to arran ge from largest to smallest value.
Then % of Volume and % of cost volume is find out. and then the Item A, B and C are classified as given here in the table. Nearly 60.93% of items are coming as A category and 32.31 as B and 6.75% as C category
Stock Keeping Unit Number Cost per unit Annual Volume Cost-Volume % of Vol % of CV Item's Category CG5665 $1.15 220000 $253,000.00 77.51 32.25 A XX5455 $45 5000 $225,000.00 1.76 28.68 A AF7232 $145 1000 $145,000.00 0.35 18.48 B ZZ7600 $450 80 $36,000.00 0.03 4.59 B SR7900 $11 2300 $25,300.00 0.81 3.23 B CB7111 $0.88 28000 $24,640.00 9.87 3.14 B HH6789 $75 300 $22,500.00 0.11 2.87 B SR7130 $18 1000 $18,000.00 0.35 2.29 C XY6000 $65 130 $8,450.00 0.05 1.08 C AA1234 $1.20 5000 $6,000.00 1.76 0.76 C ZZ3211 $300 20 $6,000.00 0.01 0.76 C AC1444 $5.20 1000 $5,200.00 0.35 0.66 C GH4315 $0.65 8000 $5,200.00 2.82 0.66 C FD2222 $0.35 12000 $4,200.00 4.23 0.54 C Total $283,830.00 $784,490.00 $100.00 $100.00Related Questions
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