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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, McDonalds (MCD) company-owned restaurants had the follo
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 of dollars.) million b. What is McDonald's contribution margin ratio? c. How much would operating income increase if same-store sales increased by $1,000 million for the coming year, with no char fixed costs? Round your answer to the closest million. million
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S a. Contribution Margin b. Contribution margin ratio c. Increase in Operating Income 6,031 Million 37% 370 Million S Working

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