Question: Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $32,800 $8,652 Food

 Contribution Margin and Contribution Margin Ratio For a recent year, McDugal'scompany-owned restaurants had the following sales and expenses (in millions): Sales $32,800

Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $32,800 $8,652 Food and packaging Payroll 8,700 Occupancy (rent, depreciation, etc.) 10,448 General, selling, and admin. expenses 5,000 Other expense 660 Total expenses (33,460) Operating income (loss) $(660) 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? Enter your answer in million, rounded to one decimal place. million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f