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Hi I need help with this problem thank you! Contribution Margin and Contribution Margin Ratio Obj. 2 For a recent year, McDonald's (MCD) company-owned restaurants
Hi I need help with this problem thank you!
Contribution Margin and Contribution Margin Ratio Obj. 2 For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): 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) 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) Step by Step Solution
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