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Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $17,000 Food and
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $17,000 Food and packaging $4,150 Payroll 4,500 Occupancy (rent, depreciation, etc.) 5,750 General, selling, and admin. expenses 2,600 Other expense 340 Total expenses (17,340) Operating income (loss) $(340) Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. 3. What is McDonald's contribution margin? Enter your answer in million, rounded to one decimal place. b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. c. How much would operating income increase if samestore sales increased by $1,000 million for the coming year, with no change in the contribution margin ratio or xed costs? $ million d. What would have been the operating income or loss for the recent year if sales had been $1,000 million more? e. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number. 53:] million
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