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 Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $19,800 $5,720 5,000 5,590 2,900 $19,210 $590 Income from operations Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administr expenses a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of do lars.) million b. What is McDonald's contribution margin ratio? perations increase if same-store sales increased by $1,200 million for the coming year, with c. How much would income from o no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
