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 paper Payroll and employee benefits Occupancy and other expenses $23,000 $(2,700) (2,400) (4,100) General, selling, and administrative expenses (3,800) $(13,000) $10,000 Operating income Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? 15,355 million b. What is McDonald's contribution margin ratio? Round to one decimal place. 66.76 X % c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million Feedback Check My Work a. Sales minus total variable costs equals contribution margin. b. Contribution margin divided by sales equals contribution margin ratio.