Question: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $32,700 Food and

 Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's

Contribution Margin and Contribution Margin Ratio

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

Sales $32,700
Food and packaging $13,751
Payroll 8,200
Occupancy (rent, depreciation, etc.) 4,969
General, selling, and administrative expenses 4,800
$31,720
Income from operations $980

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 income from operations increase if same-store sales increased by $2,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million I have figured out the first two but I cannot figure out section c.

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $32,700 $13,751 Food and packaging Payroll 8,200 4,969 Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 4,800 $31,720 Income from operations $980 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.) $ 8,829 million b. What is McDonald's contribution margin ratio? 27 % c. How much would income from operations increase if same-store sales increased by $2,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million

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