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For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $14,700 Food and packaging $(4,721) Payroll (3,700) Occupancy
For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):
Sales | $14,700 |
Food and packaging | $(4,721) |
Payroll | (3,700) |
Occupancy (rent, depreciation, etc.) | (3,739) |
General, selling, and administrative expenses | (2,100) |
$(14,260) | |
Operating income | $440 |
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
How much would operating income increase if same-store sales increased by $900 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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