The following figures are taken from the 2003 financial statements of McDonald's and Wendy's. 1 Figures are in million dollars.
a. In 2003, what were McDonald's inventory turns? What were Wendy's inventory turns?
b. Suppose it costs both McDonald's and Wendy's $3 (COGS) per their value meal offerings, each sold at the same price of $4. Assume that the cost of inventory for both companies is 30 percent a year. Approximately how much does McDonald's save in inventory cost per value meal compared to that of Wendy's? You may assume the inventory turns are independent of the price.

  • CreatedMarch 31, 2015
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