Contribution margin and contribution margin ratioFor a recent year, Mcdonald's company-owned restaurants bad thefollowing sales and expenses (in millions): Sales $18,169.3 Food and packaging $6,129.7 Payroll 4,756.0 Occupancy (rent, depreciation, etc.) 4,402.6 General, selling, and administrative expenses 2,487.9 $17,776.2 Income from operations $ 393.1 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 nearesttenth of a million (one decimal place).b. What is Mcdonald's contribution margin ratio? Round to onedecimal place. c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with nochange in the contribution margin ratio or fixed costs? Round youranswer to the nearest tenth of a million (one decimal place).

Contribution margin and contribution margin ratioFor a recent year, Mcdonald's company-owned restaurants bad thefollowing sales and expenses (in millions): Sales $18,169.3 Food and packaging $6,129.7 Payroll 4,756.0 Occupancy (rent, depreciation, etc.) 4,402.6 General, selling, and administrative expenses 2,487.9 $17,776.2 Income from operations $ 393.1 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 nearesttenth of a million (one decimal place).b. What is Mcdonald's contribution margin ratio? Round to onedecimal place. c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with nochange in the contribution margin ratio or fixed costs? Round youranswer to the nearest tenth of a million (one decimal place).

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned...

See similar textbooks

Similar questions

Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales dollars is 323,000,000. Determine Jorgensen Companys margin of safety as a percent of current sales.
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $32,600 Food and packaging $13,718 Payroll 8,200 Occupancy (rent, depreciation, etc.) 5,002 General, selling, and administrative expenses 4,700 $31,620 Income from operations $980 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round to one decimal place.fill in the blank 2 % c. How much would income from operations increase if same-store sales increased by $2,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $ 4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc.) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $ 78.0 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 tenth of a million (one decimal place).$fill in the blank 1 million b. What is McDonald's contribution margin ratio? Round your answer to one decimal place.fill in the blank 2 % 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? Round your answer to the nearest tenth of a million (one…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $ 4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc.) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $ 78.0 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 tenth of a million (one decimal place).$ b. What is McDonald's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).$ Incorrect…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $78.0 Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).$__ million b. What is McDonald's contribution margin ratio? Round your answer to one decimal place.__ % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).$__million
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $17,900 Food and packaging $5,200 Payroll 4,500 Occupancy (rent, depreciation, etc.) 5,060 General, selling, and administrative expenses 2,600 $17,360 Income from operations $540 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$fill in the blank 1 million b. What is McDonald's contribution margin ratio?fill in the blank 2 % c. How much would income from operations increase if same-store sales increased by $1,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$fill in the blank 3 million
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $40,800 Food and packaging $11,004 Payroll 10,300 Occupancy (rent, depreciation, etc.) 12,376 General, selling, and administrative expenses 5,900 $39,580 Income from operations $1,220 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$________ million b. What is McDonald's contribution margin ratio?________% c. How much would income from operations increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$_________ million
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $22,500 Food and packaging $8,955 Payroll 5,700 Occupancy (rent, depreciation, etc.) 3,875 General, selling, and administrative expenses 3,300 $21,830 Income from operations $670 Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place.fill in the blank 2 % c. How much would income from operations increase if same-store sales increased by $1,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$fill in the blank 3…
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $15,200 Food and packaging $4,592 Payroll 3,800 Occupancy (rent, depreciation, etc.) 4,148 General, selling, and administrative expenses 2,200 $14,740 Income from operations $460 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$fill in the blank b. What is Wicker Company's contribution margin ratio? Round to one decimal place.fill in the blank c. How much would income from operations increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$fill in the blank million
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $28,500 Food and packaging $11,730 Payroll 7,600 Occupancy (rent, depreciation, etc.) 4,770 General, selling, and admin. expenses 4,400 Other expense 570 Total expenses (29,070) Operating income (loss) $(570) 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 $1,700 million for the coming year, with no change in the contribution margin ratio or fixed costs?$ million d. What…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $14,300 Food and packaging $(3,568) Payroll (3,600) Occupancy (rent, depreciation, etc.) (4,602) General, selling, and administrative expenses (2,100) $(13,870) Operating income $430 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$ million b. What is McDonald's contribution margin ratio?% c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$ million
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $24,400 Food and packaging $9,684 Payroll 6,200 Occupancy (rent, depreciation, etc.) 4,186 General, selling, and administrative expenses 3,600 $23,670 Income from operations $730 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Sales	$18,169.3
Food and packaging	$6,129.7
Payroll	4,756.0
Occupancy (rent, depreciation, etc.)	4,402.6
General, selling, and administrative expenses	2,487.9
	$17,776.2
Income from operations	$ 393.1