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Please help me how to do it? Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales
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Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $41,000 Food and packaging $(15,590) Payroll (10,300) Occupancy (rent, depreciation, etc.) (7,880) General, selling, and administrative expenses (6,000) $(39,770) Operating income $1,230 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.) $ -162,070 X million b. What is McDonald's contribution margin ratio? % C. How much would operating income increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. millionStep by Step Solution
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