Question: Contribution Margin and Contribution Margin Ratio. For a recent year, MeDonald'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, MeDonald'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 Income from operations Assume that the variable costs consist of food and packaging, payrol, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest mallion. (Give answer in millions of dollars.) s. miltion b. What is McDonald's contribution margin ratio? % c. How much would income from operations increase if same-store sales increased by $2,200 mallon for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. s milition
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