Question: ( Major U . S . Retailers ) The following table shows financial data ( year 2 0 0 4 ) for Costco Wholesale and
Major US Retailers The following table shows financial data year for Costco
Wholesale and Walmart, two major US retailers.
McDonalds Wendys
Inventory $ $
Revenue
Cost of goods sold
Gross profit
Assume that both companies have an average annual holding cost rate of percent ie
it costs both retailers $ to hold an item that they procured for $ for one entire yearHow much lower is on average, the inventory cost for Costco compared to Walmart of
a household cleaner valued at $ COGS? Assume that the unit cost of the household
cleaner is the same for both companies and that the price and the inventory turns of an
item are independent.
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