Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Contribution margin and contribution murgin ratio For a recent vear, McDonald's (MCD) compamy-ewned restaurants had the following saies and expenses (in millons): Soles $(2,800)$22,000 Food
Contribution margin and contribution murgin ratio For a recent vear, McDonald's (MCD) compamy-ewned restaurants had the following saies and expenses (in millons): Soles $(2,800)$22,000 Food and paper (2,300) Parrel and emplovee benehts (4,400) Occupancy and other expenses 5(12,000)(2,500) Operating income Astume that the varable costs consts of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling; and administrate expenses. a. What is Mcoonald's contribution margin? milion b. What is McDonald's contribution margin ratio? Round to one decimal place. c. How much would operating income increase if same-stoce sales increased by sa00 million for the coming year, with no change in the contribution margin ratio or flaed costa? Round your answer to the nearest tenth of a million (one decimal place). million High-low method for a service company Siema Railrosd inc. decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Sierra Raliroad is "gross-ton miles," which is the total number of tons multiplied by the miles moved. Determine the variable cost per gross-ton mile and the total fixed cost. Variabie cost (If required, round to two decimal places.) \$ per gross-ton mile Total fixed cost 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started