Question
Sales $36,200 Food and packaging $(12,310) Payroll (9,100) Occupancy (rent, depreciation, etc.) (8,400) General, selling, and administrative expenses (5,300) $(35,110) Operating income $1,090 Assume that
Sales | $36,200 |
Food and packaging | $(12,310) |
Payroll | (9,100) |
Occupancy (rent, depreciation, etc.) | (8,400) |
General, selling, and administrative expenses | (5,300) |
$(35,110) | |
Operating income | $1,090 |
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.) $fill in the blank 1 million
b. What is McDonald's contribution margin ratio? fill in the blank 2 %
c. How much would operating income increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $fill in the blank 3 million
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