Question
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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