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For a recent year Mcdonald's company-owned restaurants had the following sales and expenses (in millions) Sales Food and packaging Payroll Occupancy (rent, depreciation, etc) General,
For a recent year Mcdonald's company-owned restaurants had the following sales and expenses (in millions) Sales Food and packaging Payroll Occupancy (rent, depreciation, etc) General, selling, and admin expenses Other expenses Total expenses Operating income (loss) $16,488 $5,552 4,400 4,025 2,434 209 (16,620 $(132 Assume that the variable costs consist of food and packaging payroll, selling and administrative expenses. a. What is Mcdonald's contribution margin? Round to the nearest million b. What is Mcdonald's contribution margin ratio? Round to one decimal place c. How much would operating income increase if same store sales increase by $500 million for the coming year, with no change in th in the contribution margin ratio or fixed costs? d. What would have been the operating income or loss for the recent year if sales had been $500 million more? e. To achieve break even for the recent year, by how much would sales need to increase
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