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The McDonald’s fast-food restaurant on campus sells an average of 4,200 quarter-

ID: 462736 • Letter: T

Question

The McDonald’s fast-food restaurant on campus sells an average of 4,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 620 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound.

What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.)

On average, how many days of supply are on hand? (Use 364 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

The McDonald’s fast-food restaurant on campus sells an average of 4,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 620 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound.

What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.)

On average, how many days of supply are on hand? (Use 364 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)


Explanation / Answer

4200 Quarter Pound hamburgers Each week

Hamburger patties are supplied twice a week that is after ever 3rd day the patties are supplied.

620 Pound of Hambuger patties are their in the store/stock.

Cost of the Hamburger patties is $4 a pound.

Cost of goods sold /Average inventory or Sales/Inventory.

Average inventory/cost of goods sold*365.

620/4*365=56,575

56575/364=155 Days

We have supply for 155 days in our hand.

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