Question

The following data (all in billions $) were the sales and costs (excluding selling and general...

  1. The following data (all in billions $) were the sales and costs (excluding selling and general and administrative costs) of McDonald’s for company-operated restaurants (i.e., excluding franchise restaurants) during a three-year period.  


McDonald's

Year 3

Year 2

Year 1

Sales

16.6

16.6

15.5

Operating costs food & paper

5.5

5.9

5.2

Occupancy (lease, etc)

3.9

3.8

3.5


The following data (all in billion $) were the sales, cost of sales (= cost of goods sold), and operating and overhead expenses of Walmart during the same three-year period:    

  

Walmart

Year 3

Year 2

Year 1

Net Sales

285

256

230

Cost of Sales (COS)

220

199

178

Operating, selling, general & admin costs (OSGA)

51

45

40

  1. Calculate an appropriate measure of productivity for each company. (Do not round intermediate calculations. Enter the answers in billions. Round the final answers to 3 decimal places.)

Productivity

Year 3       

Year 2       

Year 1       

HBC

Wal-Mart


  1. Which company was more productive?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hi,

Please find answers below.

If you like the answer, please Up Vote. It will encourage me to contribute more.

Add a comment
Know the answer?
Add Answer to:
The following data (all in billions $) were the sales and costs (excluding selling and general...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions):...

    For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $19,200 Food and packaging $(7,712) Payroll (4,800) Occupancy (rent, depreciation, etc.) (3,308) General, selling, and administrative expenses (2,800) $(18,620) Operating income $580 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.) $ million b. What...

  • Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned restaurants had the...

    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 $38,300 Food and packaging $(10,274) Payroll (9,700) Occupancy (rent, depreciation, etc.) (11,576) General, selling, and administrative expenses (5,600) $(37,150) Operating income $1,150 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...

  • For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):...

    For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,384.5) $(15,083.3) Operating income $211.7 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 tenth of a million (one decimal place). $ x million b....

  • a. What is McDonald’s contribution margin? Round to the nearest million. b. What is McDonald’s contribution...

    a. What is McDonald’s contribution margin? Round to the nearest million. b. What is McDonald’s contribution margin ratio? Round to one decimal place. c. How much would operating income increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? d. What would have been the operating income or loss for the recent year if sales had been $500 million more? e. To achieve break even for the...

  • For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...

    For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $23,900 Food and packaging $9,667 Payroll 6,300 Occupancy (rent, depreciation, etc.) 4,233 General, selling, and admin. expenses 3,700 Other expense 480 Total expenses (24,380) Operating income (loss) $(480) 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? Enter your answer in million, rounded to one decimal place....

  • For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...

    For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $14,400 Food and packaging $3,960 Payroll 3,800 Occupancy (rent, depreciation, etc.) General, selling, and admin, expenses 4,440 2,200 Other expense 290 Total expenses Operating income (loss) (14,690) $(290) 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? Enter your answer in million, rounded to one decimal place....

  • Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the...

    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 $16,300 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $(5,209) (4,100) (4,101) (2,400) $(15,810) Operating income $490 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expe a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions...

  • Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the...

    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 $26,200 Food and packaging $(11,268) Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses (6,600) (3,742) (3,800) $(25,410) $790 Operating income 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...

  • Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the...

    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 $37,200 Food and packaging $(16,340) Payroll (9,400) Occupancy (rent, depreciation, etc.) (4,940) General, selling, and administrative expenses (5,400) $(36,080) Operating income $1,120 Assume that the variable costs corſist 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...

  • The following data (in millions) were adapted from recent financial statements of International Paper Company (IP)...

    The following data (in millions) were adapted from recent financial statements of International Paper Company (IP) and Wal-Mart Stores Inc. (WMT) International Paper Wal-Mart Sales $23,617 $484,651 Cost of goods sold $16,254 $365,086 Operating income $1,517 $27,147 Accounts Receivable Beginning of year $4,058 $6,677 End of year $3,414 $6,778 Inventory Beginning of year $2,825 $44,858 End of year $2,424 $45,141 1. Compute the accounts receivable turnover for International Paper and Wal-Mart. Round to one decimal place. 2. Compute the days’...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT