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Business, 25.02.2020 04:08 alleyeverett031
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $19,900 Food and packaging $(7,571) Payroll (5,000) Occupancy (rent, depreciation, etc.) (3,829) General, selling, and administrative expenses (2,900) $(19,300) Operating income $600 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is McDonald's contribution margin ratio? % c. How much would operating income increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million Check My Work
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Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned...
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