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For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions) $23,900 Sales Food and packaging $6,701 Payroll 6,000 Occupancy (rent,
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions) $23,900 Sales Food and packaging $6,701 Payroll 6,000 Occupancy (rent, depreciation, etc.) 6,979 General, selling, and administrative expenses 3,500 $23,180 $720 Income 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 million. (Give answer in millions of dollars.) million b. What is McDonald's contri bution margin ratio? % c. How much would income from operations increase same-store sales increased by $1,400 million for the coming year, with no change in the contribution margin ratio or the closest million fixed costs? Round your answer million
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