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McDonalds Inventory $128.40Revenue $17, 140.50COGS $ 11943, 70Gross Profit $5,196.80
Wendy's Inventory: $54.40Revenue: 3148.90COGS: 1634.60Gross Profit: 1514.40
A. What were McDonalds inventory turns? What were Wendy's Inventory Turns?
B. Suppose it costs both McDonalds and Wendy's $ 3 (COGS) per their value meal offerings each sold at the same price of $4. Assume that the cost of inventory for both companies is 30 percent a year. Approx. how much does McDonald's save in inventory cost per value meal compared to that of Wendy's. you may assume the inventory turns are independent of prices.
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