7:14 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 4/5 items 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 Food and packaging Payroll Occupancy (rent, depreciation, etc.) $35,000 $(11,910) (8,800) (8,140) General, selling, and administrative expenses (5,100) $(33,950) Operating income $1,050 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 $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:12 1 Week 3 - Assignment A 1. EX.06.05 .. 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Progress: 2/5 items January February March April May June Transportation Costs Gross-Ton Miles $1,053,500 301,000 1,174,600 336,000 830,100 218,000 1,126,100 326,000 944,500 262,000 1,210,900 354,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-tor Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com 7:13 1 Week 3 - Assignment A 1. EX.06.05 2. EX.06.08.ALGO 3. EX.06.09.ALGO 4. EX.06.10.ALGO 5. EX.06.02 Progress: 3/5 items Contribution Margin Ratio a. Young Company budgets sales of $870,000, fixed costs of $48,900, and variable costs of $217,500. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 70%, sales were $887,000, and fixed costs were $440,840, what was the operating income? Previous Next Assignment Score: 0.0% All work saved. Save and Exit Submit Assignment for Grading AA v2.cengagenow.com