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EX 19-10 Contribution margin and contribution margin ratio For a recent year, McDonald's company-owned restaurants had penses (in millions): Obj. 2 4.6% the following sales
EX 19-10 Contribution margin and contribution margin ratio For a recent year, McDonald's company-owned restaurants had penses (in millions): Obj. 2 4.6% the following sales and ex Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 18,169.3 ORLD $ 6,129.7 4,756.0 4,402.6 24879 $17.776.2 393.1 ncome from operations Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. A. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). B. What is McDonald's contribution margin ratio? Round to one decimal place. C. How much would income from operations increase if same-store sales increased by 500 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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