This will be an exercise in managing fixed and variable costs. The following data are derived from the 2013 10-K filing of McDonald's 6,738 company-owned stores in millions of dollars) 3 3 0 11 12 13 14 15 16 27 Sales Food & Packaging (variable) Payroll & Employee Benefits Occupany (fixed) Operating income 2013 Xof Sales 18874,2 100% (6361,3) 33,7% (4824,1) 25,6N (4393,23 23,3% 3295,6 17,5% We will assume two scenarios 19 20 21 1) Payroll and employee benefits are 25% fixed and 75% variable, 21 Payroll and employee benefits are 75% fixed and 25% variable. Scenarios Fixed Variable Scenario N2 Fixed Variable 23 24 25 26 27 28 29 30 31 32 33 36 Food & Packaging Payroll & Employee Benefits Occupany 0,0% 6,4% 23,3% 29.7% 33,7% 19,2% 0,0% 52,9% 0.0% 19,2% 23,3% 42,4% 33,7% 6,4% 0,0% 40.1% Sales 100,0% 100,0% Contribution Marion Ratio 46.5% 59,5% (note that these are based on rounded numbers which is why the math doesn't seem to work out exactly FOR QUESTIONS 1 THRUB, DO THE COMPUTATIONS FOR BOTH SCENAROHI AND SCENARIO 22. 1 235 5C 22955 2 3 162.62 232,68 4 5 of the average sale per customer wisit is$5.00, what is the contribution mare in Siber customer visit fround to the nearest cent? With 735 company-owned store what is the fixed cost per stare per years 830,992.13 $ 1,188,969.28 Assume that mich store in open 24 hours per day (10 am to midnight. 365 days per year. What is the fined cost perstore per hour? Combine your unwirs to (1) and (b). How many customers must visit the average McDonald's store PER HOUR EACH DAY in order for McDonalds" to cover all of their lived costs to break even)? Aes me that each one is open 24 hours per dw lle am to 1 am - now serving breakfastk 365 days per year What is the feed cost per store per hour? Combine your anders to (1) and (5) How many customers must wisit the average McDonald's to PUR HOUKIACH DAY in order for McDonald to cover all of their fied couts to break even? Asume that each one is open an Bours per day (o am to midnight), out elect to close on Sondey there were 52 Sunday in 2013). What is the fixed cost per more per hour? Combine your www to und How many customers who werap Me Donald ore POR HOUR EACH OAV in order for me Donald to cover all of hele lived couts to break even) Why we McDonald's and other fast food aboments into 24 hour drive the service 7 5 10 Why, when you place your order does McDonald's always offer to Super Se your meal