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 4 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) Operating income $7,324.0 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. How much would operating income increase if same-store sales lecreased by $800 million for the coming year, with no change in the decimal place).

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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 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7 Operating income Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative exp a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). $5,776.6 X million b. What is McDonald's contribution margin ratio? Round to one decimal place. 37.77 X % I. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no ch= margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). 277.6 million Feedback

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $41,400 Food and packaging $15,766 Payroll 10,400 Occupancy (rent, depreciation, etc.) 7,994 General, selling, and administrative expenses 6,000   $40,160 Income from operations $1,240 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a.  What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$ million b.  What is McDonald's contribution margin ratio? % c.  How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$ million