Reference no: EM132685610
Problem - Contribution margin and contribution margin ratio
For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):
Sales $16,561
Food and packaging $ 5,586
Payroll 4,300
Occupancy (rent, depreciation, etc.) 3,767
General, selling, and administrative expenses 2,355
$16,008
Income from operations $ 553
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
Required -
a. What is McDonald's contribution margin? Round to the nearest million.
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 $400 million for the coming year, with no change in the contribution margin ratio or fixed costs?
|
Abuse of drugs taken for chronic pain
: Abuse of drugs taken for chronic pain (known as analgesics) and compare narcotic analgesics (those prescribed by a physician) with OTC analgesics
|
|
Create a new product that will serve two business markets
: Describes your product, explains your strategy for entering the markets, and analyzes the potential barriers you may encounter.
|
|
Calculating costs of issuing debt-home improvement inc
: Home Improvement, Inc. needs to raise $2.30 million to finance plant expansion. In discussions with its investment bank, Home Improvement learns
|
|
Compare differences between tacit and explicit knowledge
: Compare and contrast the major similarities and differences between tacit and explicit knowledge. Then, determine the two most effective and the two most.
|
|
What is McDonald contribution margin
: General, selling, and administrative expenses 2,355 and Income from operations $553. What is McDonald contribution margin
|
|
Identify dysfunctional aspects of the process
: Analyze a communication process, identify dysfunctional aspects of the process, and develop action plans to improve the communications
|
|
Calculating costs of issuing stock
: Your company needs to raise $4.09 million to finance plant expansion. In discussions with its investment bank, you learn that the bankers
|
|
What is the required cash outflow-siclan company
: What is the required cash outflow associated with the acquisition of a new machine at t = 0?
|
|
What is the contribution margin ratio for Bryan Company
: Bryan Company budgets sales of $1,800,000, fixed costs of $1,000,000, and variable costs of $1,080,000. What is the contribution margin ratio for Bryan Company
|