Question

the sports bar opens 7 days a week. it has an average daily demand of 540 liters of beer. The bar brews beer on the premises and they have a policy of your pint is sold when it is three days old. If the beer costs the bar £0.89 per liter, what is the value of the sports bar's inventory of beer? (2 decimal places)

Answer 1

The value of the sports bar's inventory of beer is £13,444.80.

Step-by-step explanation:

To calculate the value of the sports bar's inventory of beer, we need to multiply the average daily demand of 540 liters by the number of days in a week. Since the sports bar is open 7 days a week, the weekly demand would be 540 liters x 7 days = 3780 liters. However, the bar has a policy of selling pints when they are three days old. This means that we need to consider the inventory for 4 days. So, the weekly demand becomes 3780 liters x 4 days = 15120 liters.

Now, to find the value of the inventory, we multiply the total liters by the cost of beer per liter. The cost of the beer is £0.89 per liter. So, the value of the sports bar's inventory of beer is 15120 liters x £0.89 = £13,444.80.