The McDonald’s fast-food restaurant on campus sells an average of 5,600 quarter-

Question

The McDonald’s fast-food restaurant on campus sells an average of 5,600 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 490 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply

Explanation / Answer

A.

Inventory Turnover per year = Cost of goods sold / Average inventory

Cost of goods sold = 5600*$3*52 weeks = $873600

Average inventory = 490 pounds * 52 weeks*2 = 50960 pounds

Inventory Turnover per year = 873600/50960 = 17.14 times

B.

Average days of supply = 365/inventory turnover

= 365/17.14

= 21.29

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.