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 $18,169.3 $ 6,129.7

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $18,169.3 $ 6,129.7 Food and packaging Payroll Occupancy (rent, depreciation, etc.) 4,756.0 4,402.6 General, selling, and administrative expenses 2,487.9 $17,776.2 Income from operations $ 393.1 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 tenth of a million (one decimal place). $ 6,288.44 X million b. What is McDonald's contribution margin ratio? Round to one decimal place. 34.61 X % C. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million
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