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Contribution Margin and Contribution Margin Ratio For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food

Contribution Margin and Contribution Margin Ratio

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

Sales $15,295.0
Food and packaging $(4,896.9)
Payroll (4,134.2)
Occupancy (rent, depreciation, etc.) (3,667.7)
General, selling, and administrative expenses (2,384.5)
$(15,083.3)
Operating income $211.7

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

c. How much would operating income increase if same-store sales increased by $800 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). $fill in the blank 3 million

the answer is not 277.8

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