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Currently, the unit selling price of a product is $310, the unit variable cost is $250, and the total fixed costs are $918,000. A proposal is being evaluated to increase the unit selling price to $340.

a. Compute the current break-even sales (units). units

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units

Break-Even Sales and Sales to Realize Income from Operations

For the current year ended October 31, Friedman Company expects fixed costs of $340,000, a unit variable cost of $40, and a unit selling price of $60.

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize income from operations of $78,000. units

Contribution Margin and Contribution Margin Ratio

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

Sales	$18,400
Food and packaging	$4,808
Payroll	4,600
Occupancy (rent, depreciation, etc.)	5,742
General, selling, and administrative expenses	2,700
	$17,850
Income from operations	$550

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 $1,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million

a. Young Company budgets sales of $1,120,000, fixed costs of $50,400, and variable costs of $224,000. What is the contribution margin ratio for Young Company? (Enter your answer as a whole number.) %

b. If the contribution margin ratio for Martinez Company is 45%, sales were $555,000, and fixed costs were $199,800, what is the income from operations?

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