Question
Using the spreadsheet data provided (related to McDonald's, Wendy's, and Sonic), calculate for each year of data (1) the added value for each firm and
Using the spreadsheet data provided (related to McDonald's, Wendy's, and Sonic), calculate for each year of data (1) the added value for each firm and (2) the cost per dollar of net output for each firm. [Recall that the formulas are in the notes. Be careful when calculating the capital costs.] Create two graphs (with all three firms shown on each of the two graphs): one graph should chart the added value calculations and one should chart the cost-per-dollar-of net-output calculations. Provide a narrative interpretation for each graph. What do the lines (and their comparison) mean in plain language? Does one firm have a comparative/competitive advantage over the others? Explain
McDonald's (Dollars in Millions)
Year Revenue Cost of Materials Cost of Labor Capital Employed Opportunity Cost of Capital
1965 34.6 22.1 5.2 25.6 4.9%
1966 41.6 25.1 6.9 46.6 5.7%
1967 49.6 27.9 8.0 68.2 6.2%
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