Please do not give solution in image format For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):SalesFood and packagingPayrollOccupancy (rent, depreciation, etc.)General, selling, and administrative expenses$15,295.0$(4,896.9)(4,134.2)(3,667.7)(2,384.5)$(15,083.3)$211.7Operating incomeAssume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).X million$b. What is McDonald's contribution margin ratio? Round to one decimal place.X %c. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixedcosts? Round your answer to the nearest tenth of a million (one decimal place).X million

The contribution margin is calculated as the difference between the sales and variable costs. The…

or a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): ales pod and packaging ayroll ccupancy (rent, depreciation, etc.) eneral, selling, and administrative expenses $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7 perating income ssume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). X million What is McDonald's contribution margin ratio? Round to one decimal place. X % How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or sts? Round your answer to the nearest tenth of a million (one decimal place).

or a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): ales pod and packaging ayroll ccupancy (rent, depreciation, etc.) eneral, selling, and administrative expenses $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7 perating income ssume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). X million What is McDonald's contribution margin ratio? Round to one decimal place. X % How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or sts? Round your answer to the nearest tenth of a million (one decimal place).

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 27E

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