All categories

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

You might be interested in

Magna Carta was the result of the king's disastrous foreign policy and overzealous financial administration. John had suffered a

Korvikt [17]

Answer:

The correct answer is A. King John’s poor financial decisions and loss of territory

Explanation:

4 0

3 years ago

Read 2 more answers

A bond indenture is

Lena [83]

Answer:

C. A contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.

Explanation:

A bond indenture specifies the contract which is between the bond issuers and bond holders. The contract specifies all the obligations owed by the issuers to the bond holders.

In this case the right definition of indenture would be a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.

Hope that helps.

5 0

3 years ago

Steven is trying to save for a new car. What does he need to created to help him decide how much of his income needs to be used

Andrej [43]

Steven needs to create a budget that will list all of his expenses each month with regards to the income he brings in. Once Steven sits down and creates the budget he will see the money that is left over once he is done paying all of his necessary bills. The money that is left over can be saved to purchase a new car.

7 0

3 years ago

Read 2 more answers

A company that sells running shoes online wants to compare two new marketing strategies. They will test the strategies on 10 wee

PIT_PIT [208]

Answer:

The explanation of the three factors and they conclusion are below.

Explanation:

To begin with, when we talk about experimental units we refer to the entities that the researcher looks forward to make inferences about, so that means that in this case the experimental units of the situation will be all the people who got to visit the website in both schedules, the morning shift and the afternoon shift.

Secondly, the treatments is understood to be the process or the way, it could be said, that the researchers administrate to the experimental units. So that implicates that in this case the treatments will be the morning with its comfort described and the afternoon on the other side with its discounted prices shown.

Finally, the most probable outcomes for this experiments will be that the statics will show how the people interact with the variables and which of them generated more interest, that being either price or comfort. It will also show the behavior of the people when it comes to understand if the tend more to visit the web site at morning or afternoon.

6 0

2 years ago

Expensive department stores market service and atmosphere while less expensive stores market location and perceived lower prices

melisa1 [442]

Answer: Monopolistic competition

Explanation:

Monopolistic competition is described as a competition between firms where they offer similar services but not the same or exact services. This competition is seen in industries where differentiation is possible, example of such industries are restaurant, hairdressers, clothing, TV programs.

7 0

3 years ago