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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
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 Payroll $16,700 $(6,697) (4,200) Occupancy (rent, depreciation, etc.) (2,903) General, selling, and administrative expenses (2,400) $(16,200) $500 Operating income 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? How much would operating income increase if same-store sales increased by $1,000 million for the coming year, with no change in the contribution margatio or he costs? Round your answer to the closest million. million
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