Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. for a recent year, mcdonalds (mcd) company-owned r

For a recent year, McDonalds (MCD) company-owned restaurants had the following sales and expenses (in...

80.2K

Verified Solution

Question

Accounting

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

Sales $16,200
Food and packaging $(5,308)
Payroll (4,100)
Occupancy (rent, depreciation, etc.) (3,902)
General, selling, and administrative expenses (2,400)
$(15,710)
Operating income $490

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.) $ _____________

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

c. How much would operating income increase if same-store sales increased by $1,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest 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

Basic Math
1.2K views

A system is composed of five components, each of which is either working or failed. Consider...

Biology
1.2K views

During cocoa pulp fermentation, how does the cross-feeding dynamic between lactic acid bacteria, yeast, and acetic...

Biology
1.2K views

ATP is converted into ADP when energy is needed by an organism. If water were...

Physics
1.2K views

A block is sliding in a straight line alonga rough table. The coefficient of friction...

Geometry
1.2K views

Name an angle supplementary to Z COD.OZCOBO ZBODOZCOAO ZAOE

Accounting
1.2K views

List the five basic principles of accounting information systems.

Accounting
1.2K views

A building is acquired on January 1, at a cost of $1,030,000 with an estimated...

Accounting
1.2K views

Turquoise Realty Company owns an apartment house that has an adjusted basis of $760,000 but...

Accounting
1.2K views

What is the corporate veil and under what circumstances is an Australian court likely to...

Accounting
1.2K views

The Production Department of Hruska Corporation has submitted the following forecast of units to be...

Finance
1.2K views

Which of the following bond has the highest interest rate risk? a) 20-y &...

Finance
1.2K views

10 Your division is considering two investment projects, each of which requires an up-front...