Question

For a recent year, McDonald’s company-owned restaurants had the following sales and expenses (in millions):


Assume that the variable costs consist of food and packaging, payroll, and 60% of the general, selling, and administrative expenses.
a. What is McDonald’s contribution margin? Round to the nearest million.
b. What is McDonald’s contribution margin ratio? Round to one decimal place.
c. How much would income from operations increase if same-store sales increased by $600 million for the coming year, with no change in the contribution margin ratio or fixedcosts?


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  • CreatedFebruary 04, 2014
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