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The following figures are taken from the 2003 financial statements of McDonalds and Wendys. Figures are in million dollars. McDonald's Wendy's Inventory $ 120.0 $

The following figures are taken from the 2003 financial statements of McDonalds and Wendys. Figures are in million dollars.

McDonald's Wendy's
Inventory $ 120.0 $ 38.9
Revenue 17,054.4 3,077.1
Cost of goods sold 8,486.4 1,351.8

a. In 2003, what were McDonalds inventory turns? What were Wendys annual inventory turns? (Round the answers to 2 decimal places.)

b. Suppose it costs both McDonalds and Wendys $6 (COGS) per their value meal offerings, each sold at the same price of $7. Assume that the cost of inventory for both companies is 30 percent a year. Compute the per-unit inventory cost per value meal (in dollars) for McDonalds and Wendys. (Do not round intermediate calculations. Round the answers to 4 decimal places.)

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