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- What criteria would you use? Because the firm's focal problem is centered on the primary questions of which items to hold in inventory rather than on enhancing profitability (through profitability is always a concem ), it may be best to calculate an annual revenue criterion to be used for segmentation, by multiplying units sold by price per unit. - What would the cutoff levels be? Be sure to provide explanations of the reasoning supporting your decisions. An examination of the distribution of product revenue is necessary in order to determine cutoffs. The cumulative revenue by product are found in the fourth column of the following table: ABC Analysis for MAQ Corporation Based on the distribution of cumulative revenues, and the taking into account the percentage of items represented by each product number, it can be stated that products SR205, SR305, and SR101 are the A products, given their high contribution to cumulativel revenue and large numbers of units sold. In this case, it would be justifiable to classify SR103, SR10S, AND SR303 as B items, and the remaining items as C products. - What criteria would you use? Because the firm's focal problem is centered on the primary questions of which items to hold in inventory rather than on enhancing profitability (through profitability is always a concem ), it may be best to calculate an annual revenue criterion to be used for segmentation, by multiplying units sold by price per unit. - What would the cutoff levels be? Be sure to provide explanations of the reasoning supporting your decisions. An examination of the distribution of product revenue is necessary in order to determine cutoffs. The cumulative revenue by product are found in the fourth column of the following table: ABC Analysis for MAQ Corporation Based on the distribution of cumulative revenues, and the taking into account the percentage of items represented by each product number, it can be stated that products SR205, SR305, and SR101 are the A products, given their high contribution to cumulativel revenue and large numbers of units sold. In this case, it would be justifiable to classify SR103, SR10S, AND SR303 as B items, and the remaining items as C products

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