How much would income from operations increase if

Reference no: EM13605384

For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):
sales $ 16083\
food and packing $ 5350
payroll 4185
occupancy (rent,depression etc.) 4006
general selling and administration expenses 2340

$ 15,881
income from opretions $ 202

Assume 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 million. (Give answer in millions of dollars.)
$___________.

b. What is McDonald's contribution margin ratio? Round to one decimal place.
___________%

c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs?

Reference no: EM13605384

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