+1-415-670-9189
info@expertsmind.com
What is mcdonald contribution margin ratio
Course:- Accounting Basics
Reference No.:- EM132082214




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

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

Sales

$ 18,602.5

Food and packaging

$ 6,318.2

Payroll

4,710.3

Occupancy (rent, depreciation, etc.)

4,195.2

General, selling, and administrative

2,445.2

17,668.9


Income from operations

$ 933.6

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

Answer the following questions:

1. What is McDonald's contribution margin?

2. What is McDonald's contribution margin ratio?

3. How much would income from operations increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The following data relate to direct materials costs for November: Actual costs 4,600 pounds at $5.50  Standard costs 4,500 pounds at $6.00 What is the direct materials quantit
What are some of the ways that financial information will be changed in the way the information is processed, gathered, and communicated because of changing information tech
Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account pay
XYZ Corporation (an S corporation) is owned by Jane and Rebecca who are each 50% shareholders. At the beginning of the year, Jane's basis in her XYZ stock was $40,000. XYZ r
Prepare example journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and the percentage of receivables meth
Prepare the journal entry to record the issuance of the bonds on July 1, 2011. Prepare an amortization table through December 31, 2012 (3 interest periods) for this bond issue
Sally incurred a 90-mile round-trip commute every day, mainly because she could not get along with her supervisor at the sales office located four miles from her home. Sally
Show the balance sheets for both firms after the asset increases, and calculate each firm"s new debt ratio - show how Hastings"s balance sheet would look immediately after th