Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. contribution margin and contribution margin ratio

Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the...

90.2K

Verified Solution

Question

Accounting

Contribution Margin and Contribution Margin Ratio

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

Sales $36,800
Food and packaging $9,672
Payroll 9,800
Occupancy (rent, depreciation, etc.) 11,728
General, selling, and admin. expenses 5,600
Other expense 740
Total expenses (37,540)
Operating income (loss) $(740)

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What would have been the operating income or loss for the recent year if sales had been $2,200 million more? $ ______ million

b. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number. $ _______ million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Electrical Engineering
1.2K views

Estimate the desired parameters and draw the block diagram of an Armstrong indirect FM modulator to...

Biology
1.2K views

O Hide Slide Custom Slide show

Biology
1.2K views

Read this experiment and then answer the question below Michael wanted to see what kitchen...

Basic Math
1.2K views

Ronald Roth started his new job as controller with Aerosystems today Carole the employee benefits...

Algebra
1.2K views

Use Cramer's rule to solve the system.X +y-z = -4x - y + 2z =...

Algebra
1.2K views

Evaluate the following expression 3 12 3 24 3 12 33 24 Type an integer...

Accounting
1.2K views

Required information SB Exerclse E8-5 to E8-10 [The following information applies to...

Accounting
1.2K views

Which of the following items is NOT related to a company's ability to pay off...

Accounting
1.2K views

Ben and Eric are opening a comic bookstore to be registered as E&B Comic Bookstore...

Accounting
1.2K views

RE Under the equity method of accounting subsidiary -retained earnings and the consolidated- retained earnings...

Accounting
1.2K views

Cumulative Problems 57. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue,...

Accounting
1.2K views

Verge, Inc. has two products - Le Cadre and La Bougie. Financial data for both...