For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):
Sales |
$12,718.9 |
Food and packaging |
$ 4,033.5 |
Payroll |
3,528.5 |
Occupancy (rent, depreciation, etc.) |
2,847.6 |
General, selling, and administrative expenses |
2,231.3 |
|
12,640.9 |
Income from operations |
$ 78.0 |
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 tenth of a million (one decimal place).
$fill in the blank 1 million
b.What is McDonald's contribution margin ratio?Round your answer to one decimal place.
fill in the blank 2 %
c.How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs?Round your answer to the nearest tenth of a million (one decimal place).
$fill in the blank 3 million
Extracted text: Content CengageNOWv2 | Online teachin x b Answered: Tashiro Inc. has decide X A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Week 5 - Problem Assignment еBook Show Me How 1. EX.21.01 Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): 2. EX.21.03 Sales $12,718.9 3. EX.21.05 Food and packaging $ 4,033.5 4. EX.21.07 Payroll 3,528.5 Occupancy (rent, depreciation, etc.) 2,847.6 5. EX.21.09 General, selling, and administrative expenses 2,231.3 6. EX.21.10 12,640.9 7. EX.21.11 Income from operations $ 78.0 Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. 8. EX.21.14 a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). $ million b. What is McDonald's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million 11:07 PM O Type here to search w DEL 2/2/2021 ...