General, selling, and admin. expensesOther expenseTotal expensesOperating income (loss)2,200290%(14,790)$(290)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? Enter your answer in million, rounded to one decimal place.million.b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place.millionc. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contributionmargin ratio or fixed costs?milliond. What would have been the operating income or loss for the recent year if sales had been $900 million more?$millione. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest wholenumber. Contribution Margin and Contribution Margin RatioFor a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions):SalesFood and packagingPayrollOccupancy (rent, depreciation, etc.)General, selling, and admin. expensesOther expenseTotal expensesOperating income (loss)$4,3103,8004,1902,200290%$14,500(14,790)$(290)Assume that the variable costs consist of food and packaging, payroll, and 40% of the general,a. What is McDonald's contribution margin? Enter your answer in million, rounded to one decimal place.millionb. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place.andnistrative expenses.c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contributionmargin ratio or fixed costs?

In business, economics, and cost accounting, the term "break-even analysis" designates the point at…

Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and admin. expenses Other expense Total expenses Operating income (loss) $4,310 3,800 4,190 2,200 290 % $14,500 (14,790) $(290) 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? Enter your answer in million, rounded to one decimal place. million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs?

Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and admin. expenses Other expense Total expenses Operating income (loss) $4,310 3,800 4,190 2,200 290 % $14,500 (14,790) $(290) 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? Enter your answer in million, rounded to one decimal place. million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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