Question: Contribution margin and contribution margin ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Assume that the
Contribution margin and contribution margin ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, seling, and administrative expenses. a. What is McDonald's contribution margin? million b. What is McDonald'st contribution margin ratio? Round to one decimal place. x% c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution marain ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place)
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