The McDonald’s fast-food restaurant on campus sells an average of 3,200 quarter-

Question

The McDonald’s fast-food restaurant on campus sells an average of 3,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 540 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound. 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? (Use 364 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Days of supply

Explanation / Answer

Inventory turnover = Total sales for the period / average inventory = (3200*52)/540 = 308.15 times

Days inventory on hand = No of days in the period/ inventory turnover for the period = 364/308 = 1.18 days

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