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I need an explanation of part d and e Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following
I need an explanation of part d and e
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $35,100 Food and packaging $12,057 Payroll 9,300 Occupancy (rent, depreciation, etc.) 8,343 General, selling, and admin. expenses 5,400 Other expense 700 Total expenses (35,800) $(700) Operating income (loss) 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. $ 11,583 million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. 33 % C. How much would operating income increase if same-store sales increased by $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? 693 million d. What would have been the operating income or loss for the recent year if sales had been $2,100 million more? 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. $ millionStep by Step Solution
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