McDonald's USA

Avg unit (fries) is 121 g

Avg sale price $1.59per unit

Sales vol. expected 9billion lb (454g/lb). of potatoes beginning of q3 in year 2023

Sales vol. expected 9.45billion lb.  (454g/lb) of potatoes by end of q3 in year 2023

Sales vol. expected 18billion lb. (454g/lb) of potatoes per year in 2027

 

Determine the estimation of Year 1, Year 2, Year 3, with data provided McDonald's USA. 1) Provide references 2) Provide calculation steps 3) Provide reasoning for estimation 4) At what year will operating income be at $0?

 

Year 1

Estimated  Sales vol. expected per unit?

Estimated variable expense per unit? 

Estimated fixed cost per year?

Estimated Contribution margin per unit?

Estimated sales revenue?

What is the estimated operating income?

 

Year 2

Estimated  Sales vol. expected per unit?

Estimated variable expense per unit? 

Estimated fixed cost per year?

Estimated Contribution margin per unit?

Estimated sales revenue?

What is the estimated operating income?

 

Year 3

Estimated  Sales vol. expected per unit?

Estimated variable expense per unit? 

Estimated fixed cost per year?

Estimated Contribution margin per unit?

Estimated sales revenue?

What is the estimated operating income?

Answer rating: 100% (QA)

Here are the estimates for McDonalds USA for Year 1 Year 2 Year 3 based on the information provided Year 1 2023 Q3 1 Reference Sales vol expected 9bil... View the full answer