Question: Contribution margin and contribution margin ratio For a recent year, McDonald's ( MCD ) company - owned restaurants had the following sales and expenses (
Contribution margin and contribution margin ratio
For a recent year, McDonald's MCD companyowned restaurants had the following sales and expenses in millions:
Assume that the variable costs consist of food and paper, payroll, of occupancy and other expenses, and of the general, selling, and administrative expenses.
a What is McDonald's contribution margin?
$
million
b What is McDonald's contribution margin ratio? Round to one decimal place.
c How much would operating income increase if samestore sales increased by $ 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
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