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For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $14,400 Food and packaging $3,960 Payroll 3,800 Occupancy (rent,
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $14,400 Food and packaging $3,960 Payroll 3,800 Occupancy (rent, depreciation, etc.) General, selling, and admin, expenses 4,440 2,200 Other expense 290 Total expenses Operating income (loss) (14,690) $(290) 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? Enter your answer in million, rounded to one decimal place. $ x million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. C. 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? 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? Enter your answer in million, rounded to one decimal place. $ 5,760 million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. L 40) % C. 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? $ 352 X million d. What would have been the operating income or loss for the recent year if sales had been $900 million more? s million e. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number: million
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