Question: eBook Show Me How Question Content Area Contribution Margin and Contribution Margin Ratio For a recent year, McDonald s ( MCD ) company - owned

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Contribution Margin and Contribution Margin Ratio
For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):
Sales$17,600Food and packaging$(7,584)Payroll(4,400)Occupancy (rent, depreciation, etc.)(2,486)General, selling, and administrative expenses(2,600)$(17,070)Operating income$530
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.)

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