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 40% of the general, selling, and administrative expenses. 

a. What is McDonald’s contribution margin? Round to the nearest tenth of a million (one decimal place).

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 $500 million for the coming year, with no change in the contribution margin ratio or
fixed costs? Round your answer to the nearest tenth of a million (one decimal place).

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Sales $12,718.9 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $ 4,033.5 3,528.5 2,847.6 2,231.3 $12,640.9 Income from operations 78.0