The McDonald\'s fast-food restaurant on campus sells an average of 3,500 quarter
ID: 2747403 • Letter: T
Question
The McDonald's fast-food restaurant on campus sells an average of 3,500 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 420 pounds of hamburger in stock. Assume that the hamburger costs $4.00 a pound.
What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal place.
On average, how many days of supply are on hand? (Round your answer to 2 decimal places.)
The McDonald's fast-food restaurant on campus sells an average of 3,500 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 420 pounds of hamburger in stock. Assume that the hamburger costs $4.00 a pound.
Explanation / Answer
a. Inventory Turnover = Cost of goods sold/ Average inventory
Cost of goods sold = 1/4 X 3500 X 4=3500
Average inventory = 420
Inventory Turnover =3500/420= 50/6=8.66
b. Days of Supply on hand = 365/ Inventory Turnover =365/8.66 =42.15 days
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