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 packaging, payroll, and 40% of the peneral, selling, and administrative expenses. a. What is McDonalds contribution margin? Round to the nearest million. (Give answer in malions of dollars.) milion b. What is McDonald sontribution margin ratio? c. How much would operating income increase if same-store sales increased by 51,100 masioe for the ceming rear, with no change in the conthbution maroin ritio or foced costs? Round your answer to the closest militon. mition
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
