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) company-owned restaurants had the following sales and expenses (in millions):
Sales
Food and packaging
Payroll
$15,800$(4,402)
Occupancy (rent, depreciation, etc.)
(4,000)
(4,628)
General, selling, and administrative expenses
(2,300)$(15,330)
Operating income
$470
Assume that the variable costs consist of food and packaging, payroll, and 40% 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 same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$ million
 Contribution Margin and Contribution Margin Ratio For a recent year, MCDonald's

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