1. Part A
L= λW
L= 1200
λ= effective arrival date
W= 10
Therefore, λ=L/W
λ=120
Part B
Skiers spend on day 1=$50
Skiers spend an additional day= $30
If 1 skier spends 10 days= 50 + (30 * 9 days)= $320
Old= 320/10
=$32
If 1 skier spends 5 days= 50 + (30*4)= $170
New= 170/5
= $34
Revenue percentage difference= (34-32)/32 *100
Revenue increases by= 6.25%
2. Part A
Inventory Turn = Cost of Goods Sold / Average Inventory
McDonald’s Inventory Turns = 11943.7 / 129.4 = 92.30
Wendy's Inventory Turns = 1634.6 / 54.4 = 30.05
Part B
McDonald’s:
Average Inventory per value meal= 3 / 92.30 = $0.033
Inventory Cost per value meal = 30% * 0.033 = $0.0099
Wendy's:
Average Inventory per value meal = 3 / 30.05 = $0.0998
Inventory Cost per value meal = 30% * 0.0998 = $0.0299
Saving in McDonald's inventory cost per value meal as compared to that of Wendy ' s = 0.0299 - 0.0099=
$0.02