The following figures are taken from the 2003 financial statements of McDonalds and Wendys. Figures are in
Fantastic news! We've Found the answer you've been seeking!
Question:
The following figures are taken from the 2003 financial statements of McDonald’s and Wendy’s. Figures are in million dollars.
McDonald's | Wendy's | |||||
Inventory | $ | 120.0 | $ | 38.9 | ||
Revenue | 17,054.4 | 3,077.1 | ||||
Cost of goods sold | 8,486.4 | 1,351.8 | ||||
a). In 2003, what were McDonald’s inventory turns? What were Wendy’s annual inventory turns? (Round the answers to 2 decimal places.)
b). Suppose it costs both McDonald’s and Wendy’s $6 (COGS) per their value meal offerings, each sold at the same price of $7. Assume that the cost of inventory for both companies is 30 percent a year. Compute the per-unit inventory cost per value meal (in dollars) for McDonald’s and Wendy’s. (Do not round intermediate calculations. Round the answers to 4 decimal places.)
Related Book For
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch
Posted Date: