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Break-Even Sales Currently, the unit selling price of a product is $7,520, the unit Variable cost is $4,400, and the total fixed costs are $23,400,000.

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Break-Even Sales Currently, the unit selling price of a product is $7,520, the unit Variable cost is $4,400, and the total fixed costs are $23,400,000. A proposal is being evaluated to increase the unit selling price to $8.000. a. Compute the current break-even sales (units) units b. Compute the anticipated break even sales (units), assuming that the unit selling price is increased and all costs remain constant. units 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 $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,3845) $(15,083.3) Operating income $211.2 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 tenth of a million (one decimal place) million b. What is McDonald's contribution margin ratio7 Round to one decimal place. C. How much would operating income increase if same store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or face costs? Round your answer to the nearest tenth of a million (one decimal place). 34,61 x million

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