Change in the contribution margin ratio or fixed costs

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For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales: $27,006 Food & packaging: $6,167 payroll:4,606 Occupancy(rent, depreciation): 4,064 General, selling, admin expense: 2,394 other expense: 1,245 total: 18,476 income from operations: 8,530 Assume that the variable costs consist of food and packaging, payroll, and 80% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. c. Use the rounded contribution margin ratio value to answer the following question: how much would income from operations increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs?

Reference no: EM131211485

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