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17 March, 21:50

The McDonald's fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 350 pounds of hamburger in stock. Assume that the hamburger patties cost $1.00 a pound. What is the inventory turnover for the hamburger patties

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  1. 17 March, 23:25
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    Answer: 11.42 times

    Explanation:

    Inventory Turnover = Cost of Goods Sold / Average inventory

    Where,

    Cost of goods sold = 4,000 quarter-pound hamburgers each week x $1.00 a pound

    COGS = $4,000 per week

    Average Inventory = 350 pounds of hamburger

    Inventory Turnover = 4000 / 350 = 11.42 times
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