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3. EX.20.10.ALGO (Algorithmic) Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):
3. EX.20.10.ALGO (Algorithmic) Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging $19,500 $(8,020) Payroll (4,900) Occupancy (rent, depreciation, etc.) (3,200) General, selling, and administrative expenses (2,800) $(18,920) Operating income $580 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.) $ million b. What is McDonald's contribution margin ratio? % c. How much would operating income increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million 4. EX.20.12.ALGO (Algorithmic) Break-Even Sales Anheuser-Busch InBev SA/NV (BUD) reported the following operating information for a recent year: Sales Cost of goods sold $9,920,000 $2,480,000 Selling, general, and administrative expenses 868,000 Operating income 3,348,000. $6,572,000* *Before special items In addition, assume that Anheuser-Busch InBev sold 62,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administrative expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to- increase fixed costs by $31,600. a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels
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