rank the items in decreasing order of annual profit. Concept introduction: the ABC classification system is one means of ranking items. Items are sequenced in decreasing order of annual dollar volume of sales or usage. Ordering the items and graphing the cumulative dollar volume gives an exponentially increasing curve known as a Pareto curve.

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Chapter 5.7, Problem 25P

a)

Summary Introduction

Interpretation:rank the items in decreasing order of annual profit.

Concept introduction:the ABC classification system is one means of ranking items. Items are sequenced in decreasing order of annual dollar volume of sales or usage. Ordering the items and graphing the cumulative dollar volume gives an exponentially increasing curve known as a Pareto curve.

b)

Summary Introduction

Interpretation: store proprietor chooses to sell the chocolate cookies.

Concept introduction: the ABC classification system is one means of ranking items. Items are sequenced in decreasing order of annual dollar volume of sales or usage. Ordering the items in this way and graphing the cumulative dollar volume gives an exponential increasing curve known as a pareto curve.

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