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For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $16,488 Food and packaging $5,552 Payroll 4,400 Occupancy
For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $16,488 Food and packaging $5,552 Payroll 4,400 Occupancy (rent, depreciation, etc.) 4,025 General, selling, and admin. expenses 2,434 Other expense 209 Total expenses (16,620) Operating income (loss) $(132) Assume that the variable costs consist of food and packaging, payroll, and 45% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Enter your answer in million, rounded to one decimal place. 5,440.7 million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. %
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