For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $15,200 Food and packaging $5,568 Payroll 4,000 Occupancy (rent,
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $15,200 Food and packaging $5,568 Payroll 4,000 Occupancy (rent, depreciation, etc.) 3,332 General, selling, and admin. expenses 2,300 Other expense 300 Total expenses (15,500) Operating income (loss) $(300) 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. $ 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? $ million
d. What would have been the operating income or loss for the recent year if sales had been $900 million more? $ million
e. To achieve break even for the recent year, by how much would sales need to increase? Enter your answer in million rounded to the nearest whole number. $ million
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