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For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $26,600 Food and packaging $(11,424) Payroll (6,700) Occupancy

For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):

Sales $26,600
Food and packaging $(11,424)
Payroll (6,700)
Occupancy (rent, depreciation, etc.) (3,776)
General, selling, and administrative expenses (3,900)
$(25,800)
Operating income $800

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.) $

b. What is McDonald's contribution margin ratio?

c. How much would operating income increase if same-store sales increased by $1,600 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $

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