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McDonald's Corporation implemented a $1 billion cost-saving initiative across its global operations. The company reported the following financial figures: Cost-Saving Initiative: $1 billion Total Revenue:

  • McDonald's Corporation implemented a $1 billion cost-saving initiative across its global operations. The company reported the following financial figures:
    • Cost-Saving Initiative: $1 billion
    • Total Revenue: $25 billion
    • Operating Income: $10 billion
    • Net Income: $6 billion
  • Requirements:
    1. Calculate McDonald's net income after accounting for the cost-saving initiative.
    2. Prepare a comparative income statement showing the impact of cost-saving measures on net income.
    3. Analyze the operating profit margin before and after the cost-saving initiative.
    4. Discuss the sustainability of cost reductions in McDonald's financial performance.
    5. Evaluate the impact of cost-saving measures on McDonald's customer satisfaction and market share.

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