Contribution Margin and Contribution Margin Ratio
For a recent year, McDooley's, a familyowned group of restaurants, had the following sales and expenses:
Sales for all restaurants
$
Food and paper
Payroll and employee benefits
Occupancy and other expenses
Selling, general, and administrative expenses
Other operating expenses
Net operating expenses
Operating income loss
Assume that the variable costs consist of food and paper, payroll and employee benefits, and of the selling, general, and administrative expenses.
a What is McDooley's contribution margin?
$
b What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place.
$
d What would have been the operating income or loss for the recent year if sales had been $ more?
$
