Question: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company owned restaurants had the following sales and expenses (in millions) $38,200 Food
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company owned restaurants had the following sales and expenses (in millions) $38,200 Food and packaging $(14,000) Payroll (9,600) Occupancy (rent, depreciation, etc.) (6,950) General, selling, and administrative expenses (5,600) $(37,050) Operating income $1,150 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling and administrative compenses a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in milions of dollars.) million b. What is McDonald's contribution margin ratio 18 c. How much would operating income increase i same store sales increased by 52.300 million for the coming year, with no change in the contribution marginatio orixed cost? Round your answer to the closest million. million
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