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:
Sales
Food and packaging
Payroll
Occupancy rent depreciation, etc.
General, selling, and administrative expenses
Operating income
$
Assume that the variable costs consist of food and packaging, payroll, and of the general, selling, and administrative expenses.
a What is McDonald's contribution margin? Round to the nearest million. Give answer in millions of dollars.
$ million
b What is McDonald's contribution margin ratio?
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 closest million.
$ million
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