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For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): a. What is McDonald's contribution margin? $ Xmillion b. What is McDonald's contribution margin ratio? Round to one decimal place. X % (one decimal place). $ X million The division of costs between variable and fixed is as follows: Management is considering a plant expansion program for the following year that will permit an incre and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs : Total fixed costs $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost $ Unit contribution margin $ 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. X units 5. Determine the amount of sales (units) that would be necessary under the proposed program to X units 6. Determine the maximum operating income possible with the expanded plant. $ x a. Coastal Company budgets sales of $1,300,000, fixed costs of $35,100, and variable costs of $156,000. What is the contribution margin ratio for Coastal Company? x% b. If the contribution margin ratio for Bushner Company is 57%, sales were $480,000, and fixed costs were $186,050, what was the operating income? \$ x

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