What is mcds contribution margin rounded to nearest mill

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Reference no: EM13391936

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

Sales $24,075

food & packaging $5,300

payroll 4,122

occupancy (rent, depreciation,etc) 5,106

general, selling & admin expenses 2,333

total $16,602

income from operations $7,473

Assume that the variable costs consists of food and packaging, payroll and 60% of the general, selling & admin expenses

a. What is McD's contribution margin (rounded to nearest mill)

b. What is McD's contribution margin ratio (round to nearest decimal)

c. How much would income from operations increase if same-store sales increased by $600 million for the coming year, with no change in the contribution margin ratio or fixed costs?

Reference no: EM13391936

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