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Questions 4 (10 points). Please refer to the numbers provided in the template for this question. All numbers are in million dollars and are taken
Questions 4 (10 points). Please refer to the numbers provided in the template for this question. All numbers are in million dollars and are taken from the 2003 financial statements of McDonald's and Wendy's. 1 a. In 2003, how many days of supply were carried by McDonald's and Wendy's. respectively? . Suppose it costs both McDonald's and Wendy's $4 (COGS) per their value meal offerings, each sold at the same price of $6. Assume that the cost of inventory for both companies is 25% a year. Approximately how much does McDonald's save in inventory cost per value meal compared to that of Wendy's? You may assume the inventory turns are independent of the price. - Inventories = Revenue Cost of Goods Sold Gross Profit McDonald's $129.4 $17,140.5 $11,934.7 $5,196.8 Wendy's $54.4 $3,148.9 $1,634.6 $1,514.4 = Annual Holding cost 25%
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