Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. 1. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). 2. What is McDonald's contribution margin ratio? Round to one decimal place. Answer Check Figure: 34.6% 3. 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? Round your answer to the nearest tenth of a million (one decimal place).

Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. 1. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). 2. What is McDonald's contribution margin ratio? Round to one decimal place. Answer Check Figure: 34.6% 3. 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? Round your answer to the nearest tenth of a million (one decimal place).

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.4APR: Salespersons' report and analysis Walthman Industries Inc. employs seven salespersons to sell and...

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