Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the...
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Accounting
Contribution Margin and Contribution Margin Ratio
For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions):
Sales
$36,800
Food and packaging
$9,672
Payroll
9,800
Occupancy (rent, depreciation, etc.)
11,728
General, selling, and admin. expenses
5,600
Other expense
740
Total expenses
(37,540)
Operating income (loss)
$(740)
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What would have been the operating income or loss for the recent year if sales had been $2,200 million more? $ ______ million
b. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number. $ _______ million
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