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 $36,400 $12,704 9,200
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $36,400 $12,704 9,200 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 8,106 5,300 $35,310 Income from operations $1,090 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.) X million b. What is McDonald's contribution margin ratio? X % c. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in contribution margin ratio or fixed costs? Round your answer to the closest million. million
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