McDonalds sells its big Mac for $3.99. The cost of the raw materials (edible and disposable) is
Fantastic news! We've Found the answer you've been seeking!
Question:
McDonald’s sells its big Mac for $3.99. The cost of the raw materials (edible and disposable) is $0.77 for the big Mac. Each franchisee owes 7% of TOTAL sales to the McDonald’s head office for rent and branding purposes. 550 million big Macs are sold in the US each year, with the breakeven point being hit at 50 million burgers. Assuming that all other costs are classified as annual overhead costs (wages, electricity etc.), how much of this cost is amortized over each big Mac that is sold in a year?
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
Posted Date: