Question: ( Major U . S . Retailers ) The following table shows financial data ( year 2 0 0 4 ) for Costco Wholesale and

(Major U.S. Retailers) The following table shows financial data (year 2004) for Costco
Wholesale and Walmart, two major U.S. retailers.
McDonalds Wendys
Inventory $ 129.4 $ 54.4
Revenue 17,140.53,148.9
Cost of goods sold 11,943.71,634.6
Gross profit 5,196.81,514.4
Assume that both companies have an average annual holding cost rate of 30 percent (i.e.,
it costs both retailers $3 to hold an item that they procured for $10 for one entire year).
a. How many days, on average, does a product stay in Costcos inventory before it is sold?
Assume that stores are operated 365 days a year.

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