What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). $fill in the blank 1 million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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).
$fill in the blank 1 million

b.  What is McDonald's contribution margin ratio? Round to one decimal place.
fill in the blank 2 %

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).
$fill in the blank 3 million

 
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