For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and paper Payroll and employee benefits Occupancy and other expenses General, selling, and administrative expenses $19,207.8 $(2,564.2) (2,416.4) (4,357.6) (2,545.6) $(11,883.8) $7,324.0 Operating income Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, 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). 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 $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million

For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and paper Payroll and employee benefits Occupancy and other expenses General, selling, and administrative expenses $19,207.8 $(2,564.2) (2,416.4) (4,357.6) (2,545.6) $(11,883.8) $7,324.0 Operating income Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, 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). 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 $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million

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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Given the information below find net profit/loss in dollars for the month of June Guest Hotel Inc. Income Statement for the period ending June 30, 2021 Sales Food 179,178 79,882 Beverage Total Sales Cost of Sales Food Beverage Total cost of goods sold- Gross Profit Controllable Expenses Salaries & Wages Occupancy Office & General Utilities 77,074 26,752 100,578 27,123 11,364 9.144 Transportation Kitchen supplies Professional fees Advertising Social Media Expenses 10,750 Vehicle Total Controllable Expenses Net Profit / Loss 5.908 8,035 7.000 7,788 4.907
A company reports the following amounts at the end of the year: Total sales revenue = $510,000; sales discounts = $18,000; sales returns = $35,000; sales allowances = $20,000. Compute net revenues. Net revenues
Dexter, Incorporated, had a cost of goods sold of $67, 882. At the end of the year, the accounts payable balance was $11,989. How long, on average, did it take the company to pay off its suppliers during the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 32,400 (15,500) 16,900 Boston* $ 87,500 (64,030) 23,470 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative expenses Net income *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $17,800 and $20,200, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 (12,740) (19,026) $ 4,160 $ 4,444 Req B Gross margin percentages Return-on-sales ratios Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta % % Boston
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A company reports the following amounts at the end of the year. Total sales revenue = $410,000; cash = $38,000; sales discounts=$15,000; accounts receivable = $20,000; sales returns = $25,000; operating expenses = $72,000; sales allowances = $25,000. Compute net revenues. net revenue=.
Sellall Department Stores reported the following amounts as of its December 31 year- end: Administrative Expenses, $1,800; Cost of Goods Sold, $19,440; Income Tax Expense, $2,790; Interest Expense, $1,400; Interest Revenue, $160; General Expenses, $2,000; Net Sales, $32,580; and Delivery (freight-out) Expense, $240. Prepare a multistep income statement for distribution to external financial statement users. SELLALL DEPARTMENT STORES Income Statement
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