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Suppose it costs both McDonald’s 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. Approximately how much does McDonalds save in inventory cost per value meal compared to that of Wendy’s? You may assume the inventory turns are independent of the price.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91757682

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