1. Company: McDonald's

Scenario: Fast Food Chain Cost Management

Data:

• Monthly Fixed Costs: $300,000
• Variable Costs per Meal: $3
• Meals Sold: 100,000

Requirements:

1. Calculate the total monthly costs.
2. Determine the cost per meal.
3. Analyze the impact of increasing sales by 20,000 meals on total and per-meal costs.
4. Discuss strategies for managing costs in a fast-food chain.
5. Recommend ways to improve cost efficiency.
6. Evaluate the benefits of implementing a waste reduction program.