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For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $39,500 $(11,420) (10,000)
For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $39,500 $(11,420) (10,000) Occupancy (rent, depreciation, etc.) (11,200) General, selling, and administrative expenses (5,700) $3,320) $1,180 Operating income Assume that the vanable 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 contribution margin ratio? How much would operating income increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio or foxed cts? Round your answer to the closest million. million
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