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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

Contribution margin and contribution margin ratio
For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):
Line Item Description Amount
Sales $21,000
Food and paper $(2,900)
Payroll and employee benefits (2,000)
Occupancy and other expenses (4,100)
General, selling, and administrative expenses (4,000)
Total $(13,000)
Operating income $8,000
Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin?
fill in the blank 1 of 1$ million
b. What is McDonald's contribution margin ratio? Round to one decimal place.
fill in the blank 1 of 1%
c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).
fill in the blank 1 of 1$ million

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