For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $26,100 Food and packaging $10,150 Payroll 6,600 Occupancy (rent, depreciation, etc.) 4,770 General, selling, and administrative expenses 3,800 $25,320 Income from operations $780 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.) X million b. What is McDonald's contribution margin ratio? X % c. How much would income from operations increase if same-store sales increased by $1,600 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. X million

For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $26,100 Food and packaging $10,150 Payroll 6,600 Occupancy (rent, depreciation, etc.) 4,770 General, selling, and administrative expenses 3,800 $25,320 Income from operations $780 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.) X million b. What is McDonald's contribution margin ratio? X % c. How much would income from operations increase if same-store sales increased by $1,600 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. X million

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned...

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