Suppose that the cost of each sandwich is $2.5 and selling price is $10. This translates into a profit margin of 75%. Annual sales for the restaurant are $1200000 million and average inventory held on the balance sheet at the end of every year is worth $100000. The annual cost of inventory is 12%. You also have 4 workers.
What is the flow time (in days)? Note: assume that the restaurant operates for 360 days each year.
What is the cost of goods sold?
What is the value of the annual inventory turnover?
what is the per unit cost of inventory in percentage?
What is the per unit dollar ($) cost of inventory for a $10 sandwich?
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