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3 years ago

Contribution Margin and Contribution Margin Ratio

Business

1 answer:

emmainna [20.7K]3 years ago

7 0

Answer:

See below

Explanation:

Variable food and packaging = $6,129.7

Variable payroll = $4,756.0

Variable general, selling and administrative expenses = 40% × $2,487.9 = $995.16

Fixed general, selling and administrative expenses = 60% × $2,487.9 = $1,492.74

Fixed occupancy = $4,402.6

Total fixed cost = $1,492.84 + $4,402.6 = $5,895.34

Total variable cost = Variable food and packaging + Variable payroll + Variable general, selling and administrative expenses

= $6,129.7 + $4,756 + $995.16

= $11,880.86

a. McDonald's contribution margin

= Sales - Variable cost

= $18,169.3 - $11,880.86

= $6,288.44

b. McDonald's contribution margin

= Contribution margin / Sales

= $6,288.44 / $18,169.3

= 34.61%

c. Increase in operating income

= $500 million × 34.71

= $173,050,000

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Answer:

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2 years ago

You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and

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Explanation:

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20.47% = Rf + 1.39 * (16.50% - Rf)

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3 years ago

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Answer:

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Explanation:

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x = (24% - 30%)

x = -6%

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2 years ago

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