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 Food and packaging
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payrol Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $14,700 $5,897 3,700 2,563 2,100 $14,260 $440 Income from operations Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, saling, and administrative expenses. aWhat is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) mition b. What is McDonald's contribution margin ratio? increase if same-store sales Increased by s900 mitlion for the coming year, with no change in the contribution margin ratio or f c. How much would income from operations your answer to the closest milion. same-store million
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