Question
For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy
For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in millions):
Sales | $15,295.0 |
Food and packaging | $(4,896.9) |
Payroll | (4,134.2) |
Occupancy (rent, depreciation, etc.) | (3,667.7) |
General, selling, and administrative expenses | (2,384.5) |
$(15,083.3) | |
Operating income | $211.7 |
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 tenth of a million (one decimal place). ______ 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). _____ million
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