Question
for a recent year, McDonald's company -owned restaurents had the following sales and expenses(in millions): sales $16,083 food and packging 5,350 payroll 4,185 occupacy (
for a recent year, McDonald's company -owned restaurents had the following sales and expenses(in millions):
sales $16,083
food and packging 5,350
payroll 4,185
occupacy ( rent, amortization) 4,006
general selling and adm. exp. 2,340
15,881
income from operations $ 202
assume that the variable costs consists of food and packing, payroll, and 40% of the general, selling and administartive expenses.
a. what is Mc D's contribution margin? round to the nearrest million.
b. what is McD's contribution margin ratio? round to one decimal place.
c. how much would income from operations increase if the same- store sales increased by $500 milion for the coming year, with no change in the contribution margin ratio or fixed costs?
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