Question
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales$20,800Food and packaging$7,952Payroll5,200Occupancy (rent, depreciation, etc.)4,028General, selling, and administrative expenses3,000
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
Sales$20,800Food and packaging$7,952Payroll5,200Occupancy (rent, depreciation, etc.)4,028General, selling, and administrative expenses3,000 $20,180Income from operations$620Assume 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.) x million
b. What is McDonald's contribution margin ratio? fill in the blank x %
c. How much would income from operations increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. x million I need help filling in the bolded x tysm
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