Part Number Annual Unit Usage Unit Cost $ Annual $ Usage 21,000 5000 40 1600 4 12,000 1000 100 6. 50 50 7 800 2 10,000 9. 4000 10 5000

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

. Over the past year, a company has sold the following 10 items. The following table
shows the annual sales in units and the cost of each item.
a. Calculate the annual dollar usage of each item.
b. List the items according to their total annual dollar usage.
c. Calculate the cumulative annual dollar usage and the cumulative percentage of
items.
d. Group the items into A, B, and C groups based on percentage of annual dollar
usage

Part Number
Annual Unit Usage
Unit Cost $
Annual $ Usage
21,000
5000
40
1600
4
12,000
1000
100
6.
50
50
7
800
2
10,000
9.
4000
10
5000
Transcribed Image Text:Part Number Annual Unit Usage Unit Cost $ Annual $ Usage 21,000 5000 40 1600 4 12,000 1000 100 6. 50 50 7 800 2 10,000 9. 4000 10 5000
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