The McDonald’s fast-food restaurant on campus sells an average of 2,600 quarter-
ID: 463657 • Letter: T
Question
The McDonald’s fast-food restaurant on campus sells an average of 2,600 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 385 pounds of hamburger in stock. Assume that the hamburger patties cost $5 a pound. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover per year b. 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.) Days of supply
Explanation / Answer
Inventory turnover = Total sales for the period / average inventory = (2600*52)/385 = 351.17 times
Days inventory on hand = No of days in the period/ inventory turnover for the period = 364/351.17 = 1.01 days
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