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Sales for all restaurants Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $101,600 74,600 49,020 43,100 18,720 $312,000 (287,040) $24,960 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. X% c. How much would operating income increase if the stores sales increased by $6,200 for the coming year, with no change in the contribution margin ratio or fixed costs? X d. What would have been the operating income or loss for the recent year if sales had been $6,200 more?

Sales for all restaurants Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $101,600 74,600 49,020 43,100 18,720 $312,000 (287,040) $24,960 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. X% c. How much would operating income increase if the stores sales increased by $6,200 for the coming year, with no change in the contribution margin ratio or fixed costs? X d. What would have been the operating income or loss for the recent year if sales had been $6,200 more?

FINANCIAL ACCOUNTING
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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Sales for all restaurants Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $101,600 74,600 49,020 43,100 18,720 $312,000 (287,040) $24,960 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. X% c. How much would operating income increase if the stores sales increased by $6,200 for the coming year, with no change in the contribution margin ratio or fixed costs? X d. What would have been the operating income or loss for the recent year if sales had been $6,200 more?
Transcribed Image Text:Sales for all restaurants Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $101,600 74,600 49,020 43,100 18,720 $312,000 (287,040) $24,960 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. X% c. How much would operating income increase if the stores sales increased by $6,200 for the coming year, with no change in the contribution margin ratio or fixed costs? X d. What would have been the operating income or loss for the recent year if sales had been $6,200 more?
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