Question
Based on the data in Table 1 and using the methods related to Kay's concept of added value, what is the cost per dollar of
Based on the data in Table 1 and using the methods related to Kay's concept of added value, what is the cost per dollar of net output for McDonald's and Wendy's? Assume an interest rate (opportunity cost of capital) equal to 5%.
a. The cost per dollar of net output is $2.84 for McDonald's and $6.18 for Wendy's. b. The cost per dollar of net output is $0.24 for McDonald's and $0.58 for Wendy's. c. The cost per dollar of net output is $0.71 for McDonald's and $0.91 for Wendy's. d. The cost per dollar of net output is $0.34 for McDonald's and $0.70 for Wendy's. e. The cost per dollar of net output is $0.17 for McDonald's and $0.49 for Wendy's.
Table 1: Financial Data RevenuesCostofGoodsSold(Materials)WagesandSalariesCapitalEmployedMcDonalds($Millions)27,44115,4462,48831,534Wendys($Millions)2,0611,4002743,806
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