Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): c. How much would

Contribution Margin and Contribution Margin Ratio

For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):

c. How much would income from operations increase if same-store sales increased by $811 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.

I got 517.34 and it is wrong....help!!

image text in transcribed

For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): $16,233 Sales Food and packaging 5,300 Payroll 4,121 3,638 Occupancy (rent, depreciation, etc) General, selling, and administrative expenses 2,334 $15,393 840 Income from operations 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 5878 million b. What is McDonald's contribution margin ratio? Round to one decimal place. 36.2 c. How much would income from operations increase if same-store sales increased by $811 million for the coming year, with no change in the contribution margin ratio or fixed costs Round your answer to the closest million. million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

eliciting requirements from our customers

Answered: 1 week ago

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago