With 6,738 company-owned stores, what is the fixed cost per store per year? Also, assume that each store is open 14 hours per day (10 am to midnight), 365 days per year. What is the fixed cost per store per hour?

**When computing the fixed cost per store per year, am I supposed to include the occupancy cost in the total fixed costs? Or am I just to calculate the 25% of Payroll and Employee Benefits for scenario 1 and 75% of Payroll and Employee Benefits for scenario 2?**

How many customers must pass thru the Golden Arches' each day? 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) 2013 Sales Food & Packaging (variable) Payroll & Employee Benefits Occupany (fixed) Operating Income 18874.2 (6361.3) (4824.1) (4393.2) 3295.6 100% -34% -26% -23% 17% We will assume two scenarios: 1) Payroll and employee benefits are 25% fixed and 75% variable. 2) Payroll and employee benefits are 75% fixed and 25% variable. Scenario #1 Fixed Variable Scenario #2 Fixed Variable 0.0% Food & Packaging Payroll & Employee Benefits Occupany 0.0% 6.4% 23.3% 29.7% 33.7% 19.2% 0.0% H52.9% 19.2% 23.3% 42.4% 33.7% 6.4% 0.0% 40.1% Sales 100.0% 100.0% Contribution Margin 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)