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Sedbober [7]
4 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]4 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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Answer:

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-to record the return of goods from Jerry Hines--

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4 0
3 years ago
performance management requires knowing what activities and outputs are desired, observing whether they occur, and providing fee
mina [271]

The above statement is true.

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To learn more about performance management, refer: brainly.com/question/14506325

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5 0
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Holding all else constant while government is borrowing to cover budget deficits, the crowding out concept suggests interest rat
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Which of the following statements is correct concerning product​ costs? A. Product costs are shown with current liabilities on t
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