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For a recent year, mcdonald's company-owned restaurants had the following sales and expenses (in millions):
sales $19,000
food and packaging $8,140
payroll 4,800 occupancy (rent, depreciation, etc.) 2,690
general, selling, and administrative expenses 2,800
$18,430
income from operations $570
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).
b. what is mcdonald's contribution margin ratio? round 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).
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For a recent year, mcdonald's company-owned restaurants had the following sales and expenses (in mil...
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