Contribution Margin and Contribution Margin RatioFor a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):SalesFood and packagingPayrollOccupancy (rent, depreciation, etc.)General, selling, and administrative expenses$15,295.0$(4,896.9)(4,134.2)(3,667.7)(2,384.5)$(15,083.3)$211.7Operating incomeAssume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expa. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).$5,776.6 X millionb. What is McDonald's contribution margin ratio? Round to one decimal place.37.77 X %I. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no ch=margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).277.6millionFeedback

The contribution margin is the amount of sales revenue earned in excess over the total variable…

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 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses Operating income $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7

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 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses Operating income $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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