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McDonald's operates fast-food restaurants worldwide. For June 2026, the company reports the following operating costs across its restaurants: Rent and Lease Expenses: $50 million Labor
McDonald's operates fast-food restaurants worldwide. For June 2026, the company reports the following operating costs across its restaurants:
- Rent and Lease Expenses: $50 million
- Labor Costs: $100 million
- Food and Packaging Costs: $150 million
- Marketing and Advertising: $30 million
- Utilities and Maintenance: $20 million
Required:
- Calculate the total operating costs for McDonald's Corporation.
- Determine the cost per customer served assuming 500 million customers served.
- Analyze the impact of variable costs on operating expenses.
- Discuss the cost behavior of operating costs in the fast-food industry.
- Recommend cost control measures for McDonald's to improve profitability.
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