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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 (

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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):
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?
$
million
b. What is McDonald's contribution margin ratio? Round to one decimal place.
X %
c. 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 margin ratio or fixed costs?
Round your answer to the nearest tenth of a million (one decimal place).
$
millionFor a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):
Line Item Description Amount
Sales $22,000
Food and paper $(2,700)
Payroll and employee benefits (2,000)
Occupancy and other expenses (4,300)
General, selling, and administrative expenses (5,000)
Total $(14,000)
Operating income $8,000
Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin?
fill in the blank 1 of 1$
14,225
million
b. What is McDonald's contribution margin ratio? Round to one decimal place.
fill in the blank 1 of 1
0.6
%
c. 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 margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).
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