DAT, Inc., is considering the use of ABC analysis to classify SKUs in three categories:

DAT, Inc., is considering the use of ABC analysis to classify SKUs in three categories: those that will be delivered daily from their supplier (class A item), those that will be controlled using a continuous review system (class B items), and those that will be held in a two-bin system (class C items). DAT Inc. has asked you to determine the ABC classification. 

SKU code Projected Annual Demand Unit Cost 1 1500 $ 50.00 2 6450 $ 20.00 3 5500 $ 60.00 4 200 $ 12.50 5 2000 $ 350.00 6 84 $ 250.00 7 800 $ 80.00 8 300 $ 5.00 9 10000 $ 35.00 10 2000 $ 65.00 11 5000 $ 25.00 12 3250 $ 125.00 13 30000 $ 1.50 14 2900 $ 10.00 15 800 $ 15.00 16 1400 $ 100.00 17 1470 $ 100.00 18 8200 $ 15.00 19 12500 $ 0.16 20 5000 $ 0.20