For a recent year, McDugal's company-owned restaurants had thefollowing sales and expenses (in millions): Sales $20,200 Food andpackaging $7,702 Payroll 5,400 Occupancy (rent, depreciation, etc.)3,998 General, selling, and admin. expenses 3,100 Other expense 400Total expenses (20,600) Operating income (loss) $(400) Assume thatthe variable costs consist of food and packaging, payroll, and 40%of the general, selling, and administrative expenses. a. What isMcDonald's contribution margin? Enter your answer in million,rounded to one decimal place. $ million b. What is McDonald'scontribution margin ratio? Round your percentage answer to onedecimal place. % c. How much would operating income increase ifsame-store sales increased by $1,200 million for the coming year,with no change in the contribution margin ratio or fixed costs? $million d. What would have been the operating income or loss forthe recent year if sales had been $1,200 million more? $ million e.To achieve break even for the recent year, by how much would salesneed to increase? Enter your anwer in million rounded to thenearest whole number. $ million
