Question

The McDonald's fast-food restaurant on campus sells an average of 4,600 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 485 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Inventory turnover per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply

Answer 1

A B С 10 Answers: Inventory turnover =Cost of goods sold/average 11 inventory, 179400/485 Average days of supply=average inventory/cost of 12 goods sold, (485/179400)*7*52 369.9 per year 0.98 days Calculations A B C 1 Data Given 485 $ 2 3 Average inventory 4 average sales per week 5 Cost 6 number of weeks per year 7 days per week cost of goods sold =average sales per week* cost* number of weeks per year, 8 (4600/4)*3*52 4600 3.00 52 7 179400.00

Formulas in excel A B С 1 Data Given 485 4600 3 52 7 2 3 Average inventory 4 average sales per week 5 Cost 6 number of weeks per year 7 days per week cost of goods sold =average sales per week* cost* number of weeks per year, 8 (4600/4)*3*52 9 10 Answers: Inventory turnover =Cost of goods sold/average 11 inventory, 179400/485 Average days of supply=average inventory/cost of 12 goods sold, (485/179400)*7*52 =((B4/4)*B5*B6) =B8/B3 per year =(B3/B8)*7*52 days 17