Reference no: EM132577347
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
Sales $25,000
Food and packaging $9,010
Payroll 6,300
Occupancy (rent, depreciation, etc.) 5,340
General, selling, and administrative expenses 3,600
$24,250
Income from operations $750
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
Question a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)
Question b. What is McDonald's contribution margin ratio?
Question c. How much would income from operations increase if same-store sales increased by $1,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
|
What are bleach and cleanser return on investment
: Surf Cleaning Products manufactures, What are Bleach's and Cleanser's return on investment based on current values, respectively?
|
|
What is the syntax to find the name of the browser
: Which function is used to delete files in php? What is the syntax to find the name of the browser that the client is using
|
|
What specific type of product did darren purchase
: Darren wants to impress his new girlfriend whose father is a nationally known race car driver. He drives his Lexus to the Chevrolet dealer
|
|
What is the most important concept you got from talk
: If You Don't Understand People, You Don't Understand Business (Links to an external site.)
|
|
How much would income from operations increase
: How much would income from operations increase if same-store sales increased by $1,500 million for the coming year, with no change in the contribution
|
|
Concept of depersonalized leadership
: A critical analysis of a school's improvement and effectiveness movement in terms of its validation and potential
|
|
Business unit within vw group
: If you were the head of a business unit within VW Group, how would you leverage big data to help the company achieve this strategy?
|
|
Organisation that would affect managerial behaviour
: What are the ethical, cultural, social, and team issues in organisation that would affect managerial behaviour?
|
|
How to compute the cost of funds for kyle corporation
: The firm's bank will lend P250,000 at 18%. A 10% compensating balance will be required. Compute the cost of funds for Kyle Corporation
|