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  3. or a recent year, mcdonald's company-owned restaur

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

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Accounting

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

Sales $38,700
Food and packaging $11,567
Payroll 9,800
Occupancy (rent, depreciation, etc.) 10,573
General, selling, and administrative expenses 5,600
$37,540
Income from operations $1,160

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 $2,300 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million

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