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).
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- For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales by company operated restaurants $12,719 Food and paper $4,034 Payroll and employee benefits 3,529 Occupancy and other expenses 2,848 Selling, general, and administrative expenses 2,231 Other operating income (1,163) Net operating expenses (11,479) Operating income (loss) $1,240 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 35% of the selling, general, and administrative expenses. a. What is McDonald's contribution margin? Enter your answer in million, rounded to the nearest million. _____________million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place.______________ % c. Use the rounded contribution margin ratio value to answer the following question: how much would operating income increase if same-store sales increased by…For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,384.5) $(15,083.3) Operating income $211.7 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).$fill in the blank 1 million b. What is McDonald's contribution margin ratio? Round to one decimal place.fill in the blank 2 % c. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).$fill in the blank 3 millionFor a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and paper Payroll and employee benefits Occupancy and other expenses General, selling, and administrative expenses $19,207.8 $(2,564.2) (2,416.4) (4,357.6) (2,545.6) $(11,883.8) $7,324.0 Operating income Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, 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 to one decimal place. % c. How much would operating income increase if same-store sales increased by $800 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
- For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales by company operated restaurants $12,719 Food and paper $4,034 Payroll and employee benefits 3,529 Occupancy and other expenses 2,848 Selling, general, and administrative expenses 2,231 Other operating income (1,163) Net operating expenses (11,479) Operating income (loss) $1,240 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 35% of the selling, general, and administrative expenses. a. What is McDonald's contribution margin? Enter your answer in million, rounded to the nearest million. b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. c. Use the rounded contribution margin ratio value to answer the following question: how much would operating income increase if same-store sales increased by $250 million for the coming year, with…A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,340,000 $ 5,578,400 Cost of goods sold 4,730,000 3,511,500 Gross margin 2,610,000 2,066,900 Selling and administrative expenses: Selling expenses 1,375,000 1,079,500 Administrative expenses 711,500 615,000 Total expenses 2,086,500 1,694,500 Net operating income 523,500 372,400 Interest expense 101,000 91,000 Net income before taxes $ 422,500 $ 281,400 Members of the company’s board of directors are surprised to see that net income increased by only $141,100 when sales increased by $1,761,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) McKenzie Sales, Ltd.Comparative Income…A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,340,000 $ 5,578,400 Cost of goods sold 4,730,000 3,511,500 Gross margin 2,610,000 2,066,900 Selling and administrative expenses: Selling expenses 1,375,000 1,079,500 Administrative expenses 711,500 615,000 Total expenses 2,086,500 1,694,500 Net operating income 523,500 372,400 Interest expense 101,000 91,000 Net income before taxes $ 422,500 $ 281,400 Members of the company’s board of directors are surprised to see that net income increased by only $141,100 when sales increased by $1,761,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales %…
- A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd.Comparative Income Statement This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,511,000 Gross margin 2,600,000 2,082,600 Selling and administrative expenses: Selling expenses 1,384,000 1,081,500 Administrative expenses 709,000 615,000 Total expenses 2,093,000 1,696,500 Net operating income 507,000 386,100 Interest expense 96,000 90,000 Net income before taxes $ 411,000 $ 296,100 Members of the company’s board of directors are surprised to see that net income increased by only $114,900 when sales increased by $1,766,400. Required: 1. Express each year's income statement in common-size percentages.Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages. SorensonElectronicsCompany ElectronicsIndustryAverage Sales $2,690,000 100 % Cost of goods sold (1,829,200) (74) Gross profit $860,800 26 % Selling expenses $(484,200) (10) % Administrative expenses (188,300) (10) Total operating expenses $(672,500) (20) % Operating income $188,300 6 % Other revenue and expense: Other revenue 53,800 4 Other expense (26,900) (3) Income before income tax $215,200 7 % Income tax expense (80,700) (5) Net income $134,500 2 %A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, LimitedComparative Income Statement This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,512,000 Gross margin 2,600,000 2,081,600 Selling and administrative expenses: Selling expenses 1,387,000 1,073,500 Administrative expenses 705,500 609,000 Total expenses 2,092,500 1,682,500 Net operating income 507,500 399,100 Interest expense 96,000 88,000 Net income before taxes $ 411,500 $ 311,100 Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
- The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* Boston* $ 34,800 (15,500) 19,300 $ 86,100 (62,830) 23,270 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative (12,120) (14,496) expenses Net income $ 7,180 $ 8,774 *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $15,600 and $21,400, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta Boston Gross margin percentages % % Return-on-sales ratios % %I NEED D AND E SOLVED PLEASE (not the first three) For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): 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. 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. Use the rounded contribution margin ratio value to answer the following question: how much would operating income increase if same-store sales increased by $500 million for the coming year, with no change in the contribution…Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed In dollars. The electronics Industry averages are expressed In percentages. Sorenson Electronics Electronics Industry Company Average Sales $870,000 100 % Cost of goods sold (504,600) (64) Gross profit $365,400 36 % Selling expenses $(217,500) (15) % Administrative expenses (87,000) (15) Total operating expenses $(304,500) (30) % Operating Income $60,900 6 % Other revenue and expense: Other revenue 17,400 Other expense (8,700) (3) Income before Income tax $69,600 7 % Income tax expense (26,100) (4) Net Income $43,500 3 % a. Prepare a common-sized Income statement comparing the results of operations for Sorenson Electronics Company with the Industry average. If required, round percentages to one decimal place. Sorenson Electronics Company Common-Sized Income Statement Sorenson Electronics Sorenson…