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help asap please!! High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost
help asap please!!
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 2,100 $151,200 3,600 173,880 5,100 235,200 a. Determine the variable cost per unit and the total fixed cost per unit Variable cost: (Round to the nearest dollar.) Total fixed cost: A b. Based on part (a), estimate the total cost for 2,590 units of production Total cost for 2,590 units: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $26,300 Food and packaging $11,605 Payroll 6,600 Occupancy (rent, depreciation, etc.) 3,505 General, selling, and administrative expenses 3,800 $25,510 Income from operations $790 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 million. (Give answer in millions of dollars.) 790 million b. What is McDonald's contribution margin ratio? c. How much would income from operations increase if same-store sales increased by $1,600 million for the coming year, with no change in the contribution margin ratio or feed costs? Round your answer to the closest milion million Step by Step Solution
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