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Sedbober [7]
3 years ago
5

For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $25,700 Food a

nd packaging $8,982 Payroll 6,500 Occupancy (rent, depreciation, etc.) 5,748 General, selling, and administrative expenses 3,700 $24,930 Income from operations $770 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
Business
1 answer:
Aleks [24]3 years ago
6 0

Answer:

a. $9,338

b. 0.363

Explanation:

a. Contribution Margin  = Sales - Variable Cost

Where Sales = $25,700

Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses

V.C. = 8,982 + 6,500 + 40% * 3,700

V.C = 8,982 + 6,500 + 1,480

= $16,362

Therefore, Contribution Margin  = Sales - Variable Cost  

= $25,700 - $16,362

=$9,338

b. McDonald's contribution margin ratio  = Contribution Margin / Sales

= $9,338 / $25,700

= 0.363

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Explanation:

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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: Beginni
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Answer:

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Beginning balances:

Jan.1, 2020 :

Description                 Debit                Credit

Cash                        $93,000

Taxes Receivable  $189,500

Accounts Payable                              $52,250

Fund Balance                                   $230,250

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Description                 Debit                Credit

Taxes Receivable      $1,230,000

Estimated Revenue                         $1,230,000

To record the estimated revenue for the year.

General Government  $1,227,400

Accounts Payable                            $1,227,400

To record the estimated appropriations for the year.

Property taxes receivable $915,000

Other revenue receivable $315,000

Estimated revenue                              $1,230,000

Cash Account                  $1,182,500

Property taxes receivable                     $885,000

Other revenue receivable                    $297,500

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Contracts                                  $95,250

Accounts Payable                                      $95,250

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Debit General Government  $963,500

Credit Accounts Payable                        $963,500

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Credit Cash Account                              $1,092,500

To record payment on account.

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Other expenditures       963,500

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Taxes Receivable           237,000

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Other expenditure        963,500

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