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1) For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):

Sales	$36,100
Food and packaging	$9,357
Payroll	9,100
Occupancy (rent, depreciation, etc.)	11,263
General, selling, and administrative expenses	5,300
	$35,020
Income from operations	$1,080

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 million. (Give answer in millions of dollars.) $ million

b. What is McDonald's contribution margin ratio? %

c. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million

2) For the current year ended October 31, Friedman Company expects fixed costs of $468,000, a unit variable cost of $52, and a unit selling price of $78.

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize income from operations of $106,600. units

3) Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year:

Sales	$6,720,000
Cost of goods sold	$1,680,000
Selling, general and administration	600,000
	$2,280,000
Income from operations	$ 4,440,000*
*Before special items

In addition, assume that Anheuser-Busch InBev sold 60,000 barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general, and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $21,600.

a. Compute the break-even number of barrels for the current year. Round to the nearest whole barrel. barrels

b. Compute the anticipated break-even number of barrels for the following year. Round to the nearest whole barrel. barrels

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