A company is considering selective inventory control using the following data: Item No. Units Unit Cost (₹) 1 6,000 4.00 2 61,200 0.05 3 16,800 2.10 4 3,000 6.00 5 55,800 0.20 6 22,680 0.50 7 26,640 0.65 8 14,760 0.40 9

Statement showing ABC Analysis of Inventory Item Units % of total units Unit cost (₹) Total cost (₹) % of Total cost Classi-fication 3 16,800 4.52 2.10 35,280 21.43 A 1 6,000 1.61 4.00 24,000 14.58 4 3,000 0.81 6.00 18,000 10.94 7 26,640 7.16 0.65 17,316 10.52 14.10% 57.47% 12 24,660 6.63 0.50 12,330 7.49 B 6 22,680 6.10 0.50 11,340 6.89 5 55,800 15.00 0.20 11,160 6.78 10 90,000 24.19 0.10 9,000 5.47 11 29,940 8.05 0.30 8,982 5.46 9 20,520 5.51 0.40 8,208 4.99 65.48% 37.08% 8 14,760 3.97 0.40 5,904 3.59 C 2 61,200 16.45 0.05 3,060 1.86 20.42% 5.45%