Question
In: Accounting
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
| Sales | $25,400 |
| Food and packaging | $7,868 |
| Payroll | 6,400 |
| Occupancy (rent, depreciation, etc.) | 6,672 |
| General, selling, and administrative expenses | 3,700 |
| $24,640 | |
| Income from operations | $760 |
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 $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.
$ million
Solutions
Expert Solution
The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.
ekkarill92 answered 3 months agoRelated Solutions
For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): JUST...
For a recent year, McDonald's (MCD)
company-owned restaurants had the following sales and expenses (in
millions): JUST NEED E. I got the rest
right
Sales
$16,488
Food and packaging
$5,552
Payroll
4,400
Occupancy (rent, depreciation, etc.)
4,025
General, selling, and admin. expenses
2,434
Other expense
209
Total expenses
(16,620)
Operating income (loss)
$(132)
Assume that the variable costs consist of food and packaging,
payroll, and 45% of the general, selling, and administrative
expenses. JUST NEED E. I got the rest
right...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions):
Sales $36,000
Food and packaging $8,820
Payroll 9,500
Occupancy (rent, depreciation, etc.) 12,180
General, selling, and admin. expenses 5,500
Other expense 720
Total expenses (36,720)
Operating income (loss) $(720)
a. What is McDonald's contribution margin? Enter your answer in
million, rounded to one decimal place.
b. What is McDonald's contribution margin ratio? Round your
percentage answer to one decimal place.
c. How much would operating...
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales...
For a recent year, McDugal's company-owned restaurants had the
following sales and expenses (in millions): Sales $20,200 Food and
packaging $7,702 Payroll 5,400 Occupancy (rent, depreciation, etc.)
3,998 General, selling, and admin. expenses 3,100 Other expense 400
Total expenses (20,600) Operating income (loss) $(400) 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....
1. For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):...
1. For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales$15,300
Food and packaging$4,706
Payroll3,900
Occupancy (rent, depreciation, etc.)4,034
General, selling, and administrative expenses2,200 $14,840
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.)
$ _____________________________ million
b. What is Wicker Company's...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald's Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$34,300
Food and packaging
$8,851
Payroll
8,700
Occupancy (rent, depreciation, etc.)
10,719
General, selling, and administrative expenses
5,000
$33,270
Income from operations
$1,030
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...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald's Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$27,400
Food and packaging
$7,118
Payroll
6,900
Occupancy (rent, depreciation, etc.)
8,562
General, selling, and administrative expenses
4,000
$26,580
Income from operations
$820
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...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$14,700
Food and packaging
$6,044
Payroll
3,700
Occupancy (rent, depreciation, etc.)
2,416
General, selling, and administrative expenses
2,100
$14,260
Income from operations
$440
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...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales : $19,700
Food and Packaging: $7630
Payroll: $5000
Occupancy: $3580
General expenses: $2,900
Total: $19,110
Income from operations: $590
a. What is Wicker Company's contribution margin?
Round to the nearest million. (Give answer in millions of
dollars.)Assume that the variable costs consist of food and
packaging, payroll, and 40% of the general, selling, and
administrative expenses.
b. What...
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDugal's company-owned
restaurants had the following sales and expenses (in millions):
Sales
$27,300
Food and packaging
$7,227
Payroll
7,200
Occupancy (rent, depreciation, etc.)
8,673
General, selling, and admin. expenses
4,200
Other expense
550
Total expenses
(27,850)
Operating income (loss)
$(550)
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...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$25,600
Food and packaging
$6,356
Payroll
6,500
Occupancy (rent, depreciation, etc.)
8,274
General, selling, and administrative expenses
3,700
$24,830
Income from operations
$770
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A labor market has 50,000 people in the labor force. Each month, a fraction p of...
- A road with a radius of 72 m is banked so that a car can navigate...
- 1) If you had not dried the solid, would the calculated percent yield have been higher,...
- Two structures of alanine can be drawn that have a net charge of zero, but the...
- Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption...
- Matlab Programming Write an M-file to read a real-valued vector of any length from the keyboard...
- TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly...
ADVERTISEMENT