a. Which are fixed costs and variable costs? Explain the difference between fixed costs and variable costs.

b. How much the average total cost, average fixed cost and average variable cost? Please include the calculation steps.

c. Calculate profit for 2018, 2019, and 2020 (include the calculation steps). Then how much profit growth 2018-2019 and 2019-2020? Explain your result.

2018 $ 10,012.7 11,012.5 232.7 21,257.9 Figure 1. Income Statement of McDonald's Corporation In millions, except per share data Years ended December 31, 2020 2019 REVENUES Sales by Company-operated restaurants $ 8,139.2 $ 9,420.8 Revenues from franchised restaurants 10,726.1 11,655.7 Other revenues 342.5 287.9 Total revenues 19,207.8 21,364.4 OPERATING COSTS AND EXPENSES Company-operated restaurant expenses Food & paper 2,564.2 2,980.3 Payroll & employee benefits 2,416.4 2,704.4 Occupancy & other operating expenses 2,000.6 2,075.9 Franchised restaurants-occupancy expenses 2,207.5 2,200.6 Other restaurant expenses 267.0 223.8 Selling, general & administrative expenses Depreciation and amortization 300.6 262.5 Other 2,245.0 1,966.9 Other operating (income) expense, net (117.5) (119.8) Total operating costs and expenses 11,883.8 12,294.6 Source: Annual Report of McDonald's Corporation 2020 3,153.8 2,937.9 2,174.2 1,973.3 186.1 214.8 1,985.4 (190.2) 12,435.3