Question

The McDonald’s fast-food restaurant on campus sells an average of 6,400 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 645 pounds of hamburger in stock. Assume that the hamburger patties cost $2 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.) b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answers are in BOLD

	Average sales per week	6400	hamburgers
	weight	0.25	lbs
	No. of weeks	52	weeks
	Cost per pound weight	$2.00
	Avg. inventory	645	lbs
	COGS	Avg sales per week*no. of weeks*weight*cost per pound	$166,400
Answer a	Inventory turnover	COGS/(Avg. inventory*cost per pound)	129.0	turns per year
	no. of days=	52*7	364 days
Answer b	days of supply	[(Avg. inventory*cost per pound)/COGS]*364 days	2.83	days