Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ebook show me how contribution margin and contribu

eBook Show Me How Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's...

70.2K

Verified Solution

Question

Accounting

image

eBook Show Me How Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $26,700 Food and packaging $9,629 Payroll 6,700 5,671 Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 3,900 $25,900 Income from operations $800 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 $1,600 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. 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

Biology
1.2K views

Calculate the doubling time for S.Sudan with its growth rate of 2.82%. Doubling time =...

Finance
1.2K views

A. X-treme Vitamin Company is considering two investments, both of which cost $20,000. The firm’s cost...

General Management
1.2K views

What approach does Kickstarter’s leadership have regarding innovation, and how do they manage it?

Biology
1.2K views

TEST IT Plant Tissues Which feature of parenchyma cells stores water Thick cell walls Thin...

Physics
1.2K views

29 The length of each side of cubical vessel is If charge q is placed...

Calculus
1.2K views

4 Consider 1 cycle of a shifted sine function graph below The function below can...

Algebra
1.2K views

V

Accounting
1.2K views

Before Gordon Corporation engages in the treasury stock transactions listed below, its...

Accounting
1.2K views

Ben Johnson is the manager of the jewelry department of a...

Accounting
1.2K views

Attached is the trial balance for McCurry Corporation. McCurry is a small business that custom...

Accounting
1.2K views

Leslie and Jason, who are married filing jointly, paid the following expenses during 2022: Interest...

Accounting
1.2K views

10) Donaldson Corporation uses a periodic inventory system. On January 1, inventory is $253,000. On...