Question: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (CD) company-owned restaurants had the following sales and expenses (in millions): Sales $29,700 Food

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (CD) company-owned restaurants had the following sales and expenses (in millions): Sales $29,700 Food and packaging 5(8,006) Payroll 7.500) Occupancy (rent, depreciation, etc.) (9,004) General, selling, and administrative expenses (4,300) $(28,810) Operating income 5890 Assume that the variable cous consist of food and packaging, payroll, and 40% of the genera, veling, and administrative expenses . What is McDonald's contribution margin? Round to the nearest millon. (Give answer in millions of dollars.) million b. What is McDonald's contribution margin ratio? c. How much would operating income increase if same-store sales increased by $1,800 million for the coming year with no change in the contribution martor fixed coats Round your answer to the closest million million
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
