Question: Contribution Margin and Contribution Margin to For a recent year, McDonald's (MCO) company-owned restaurants had the following sales and experts in miliona) Sales $19.400 Food

 Contribution Margin and Contribution Margin to For a recent year, McDonald's

Contribution Margin and Contribution Margin to For a recent year, McDonald's (MCO) company-owned restaurants had the following sales and experts in miliona) Sales $19.400 Food and packaging $(5,620) Payroll (4,900) Occupancy (rent, depreciation, etc.) (5,500) General, selling, and administrative expenses (2,800) ${15,820) Operating income 5580 Assume that the varie 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 dollar mation b. What is McDonald's contribution margin ratio C. How much would operating income increase it same-store sales increased by $1,200 million for the coming year with no change in the contribution margin ratio or doo? Round your answer to the closest million million

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!