Using the ABC analysis, determine new segment profitability statements

ABC analysis determines if a product is of high demand and is critical to the organization's bottom line. Items in the A category require high levels of attention representing high profits delivered to fewer people. B category items are middle of the road. Items in the C category are sold to larger groups of people with lower profit margins. These items require the least attention.

Columbo frozen yogurt will likely be added as a C category item. General Mills is looking to bring this on to distribute in mass quantity in supermarkets with little additional advertising. Product sales will rely on the company brand for marketing rather than direct attention to this product. Demand for yogurt should be fairly stable, and consumers preferring General Mills products may lean toward this brand from previous experience with other products.