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For a recent year, McDonald's ( MCD ) company - owned restaurants had the following sales and expenses ( in millions ) : Sales Operating

For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in
millions):
Sales
Operating income
Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and
40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin?
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 increased by $800 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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