hapter 21 Cost Behavior and Cost-Volume-Profit Analysis
snits
Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and adminkthitive expenses
Income from operations ASSUMe that the variable costs consist Of food and packsgeneral, selling, :Ind administrative expenses. a. Viyhat is Mc Donald's contribution margin? Round to the r,t b. What is McDonald's contribution margin ratio? Round to
$16,561 $ 5,586 430k
and 40% of the
'ion.
?al place.
c. How much would income from operations increase if same,' = increased by $400 million for the coming year, with no change in the contribution ratio or fixed costs?
EX 21-11 Break-even sales and sales to realize income from operations For the current year ending March 31, Ewok Company expects fixed costs of $740,000, a unit variable cost of $55, and a unit selling price of $80. a. Compute the anticipated break-even sales (units). b. Compute the sales (units) required to realize income from operations of $140,000.
EX 21-12 Break-even sales )60 Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions):
Net sales Cost of goods sold Selling, general and administration
Income from operations *Before special items
$23,507 $10,336 7,831 $18,167 $ 5,340'
In addition, assume that Anheuser-Busch InBev sold 200 million barrels of beer during_ the year. Assume that variable costs were 75% of the cost of goods sold and 40% of fixed. selling, general and administration expenses. Assume that the remaining costs are For the following year, assume that Anheuser-Busch InBev expects pricing, variable cost.' pct. barrel, tru.1 fixed costs to remain constant, except that new distribution and general office facilities ife expected to increase fixed costs by $225 million. 4-1 Compute the break-evert numher of barrels for the current year. Note: For the selling, price per barrel and-v,triable costs per barrel, round to the nearest cent. Ak('' breah.evell to the nearest barrc.q.