Contribution Margin and Contribution Margin RatioFor a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses:Sales for all restaurantsFood and paperPayroll and employee benefitsOccupancy and other expensesSelling, general, and administrative expensesOther operating expensesNet operating expensesOperating income (loss)$100,56069,60039,90040,20017,460$291,000(267,720)$23,280Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrativeexpenses.a. What is McDooley's contribution margin?b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place.%c. How much would operating income increase if the stores sales increased by $5,800 for the coming year, with no change in the contribution margin c. How much would operating income increase if the stores sales increased by $5,800 for the coming year, with no change in the contribution marginratio or fixed costs?d. What would have been the operating income or loss for the recent year if sales had been $5,800 more?

The break-even sales are the sales, where the business earns no profit no loss during the period.…

Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants $291,000 Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $100,560 69,600 39,900 40,200 17,460 (267,720) $23,280 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative

Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants $291,000 Food and paper Payroll and employee benefits Occupancy and other expenses Selling, general, and administrative expenses Other operating expenses Net operating expenses Operating income (loss) $100,560 69,600 39,900 40,200 17,460 (267,720) $23,280 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned...

See similar textbooks

Similar questions

Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and admin. expenses Other expense Total expenses Operating income (loss) $4,310 3,800 4,190 2,200 290 % $14,500 (14,790) $(290) Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, a. What is McDonald's contribution margin? Enter your answer in million, rounded to one decimal place. million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. and nistrative expenses. c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs?
Contribution margin and contribution margin ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and paper D Payroll and employee benefits Occupancy and other expenses General, selling, and administrative expenses million $19,207.8 $(2,564.2) (2,416.4) (4,357.6) (2,545.6) Operating income Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). $(11,883.8) $7,324.0 b. What is McDonald's contribution margin ratio? Round to one decimal place. % million How much would operating income increase if same-store sales lecreased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Re decimal place).
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $28,500 Food and packaging $11,730 Payroll 7,600 Occupancy (rent, depreciation, etc.) 4,770 General, selling, and admin. expenses 4,400 Other expense 570 Total expenses (29,070) Operating income (loss) $(570) 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? Enter your answer in million, rounded to one decimal place. $ million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. % c. How much would operating income increase if same-store sales increased by $1,700 million for the coming year, with no change in the contribution margin ratio or fixed costs?$ million d. What…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) $15,800 $(4,402) (4,000) (4,628) General, selling, and administrative expenses (2,300) $(15,330) $470 Operating income 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? Round to the nearest million. (Give answer in millions of dollars.) million b. What is McDonald's contribution margin ratio? % c. How much would operating income increase if same-store sales increased by $900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million
Contribution margin and contribution margin ratio For a recent year, McDonald’s (MCD) company-owned restaurants had the following sales and expenses (in millions): Line Item Description Amount Sales $21,000 Food and paper $(2,500) Payroll and employee benefits (2,200) Occupancy and other expenses (4,100) General, selling, and administrative expenses (4,200) Total $(13,000) Operating income $8,000 Assume that the variable costs consist of food and paper, payroll, 25% of occupancy and other expenses, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin?fill in the blank 1 of 1$ million b. What is McDonald's contribution margin ratio? Round to one decimal place.fill in the blank 1 of 1 % c. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $15,295.0 $(4,896.9) (4,134.2) (3,667.7) (2,384.5) $(15,083.3) $211.7 Operating income Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative exp a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). $5,776.6 X million b. What is McDonald's contribution margin ratio? Round to one decimal place. 37.77 X % I. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no ch= margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). 277.6 million Feedback
Hello I have done part A and need explanations on b and c Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $18,169.3 Food and packaging $ 6,129.7 Payroll 4,756.0 Occupancy (rent, depreciation, etc.) 4,402.6 General, selling, and administrative expenses 2,487.9 17,776.2 Income from operations $ 393.1 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? Round to the nearest tenth of a million (one decimal place).$6,288.4 b. What is McDonald's contribution margin ratio? Round to one decimal place.fill in the blank % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest…
eBook Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants $279,000 Food and paper $74,140 Payroll and employee benefits 66,700 Occupancy and other expenses 60,600 Selling, general, and administrative expenses 38,500 Other operating expenses 16,740 Net operating expenses (256,680) Operating income (loss) $22,320 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin?$fill in the blank 1 b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place.fill in the blank 2 % c. How much would operating income increase if the stores sales increased by $5,600 for the coming year, with no change in the contribution margin ratio or fixed…
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $78.0 Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place).$__ million b. What is McDonald's contribution margin ratio? Round your answer to one decimal place.__ % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).$__million
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,384.5) $(15,083.3) Operating income $211.7 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? Round to the nearest tenth of a million (one decimal place). million b. What is McDonald's contribution margin ratio? Round to one decimal place. c. How much would operating income increase if same-store sales increased by $800 mnillion for the coming year, with no change in the contribution nmargin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $ 4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc.) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $ 78.0 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? Round to the nearest tenth of a million (one decimal place). million b. What is McDonald's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place). million
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions): Sales $12,718.9 Food and packaging $ 4,033.5 Payroll 3,528.5 Occupancy (rent, depreciation, etc.) 2,847.6 General, selling, and administrative expenses 2,231.3 12,640.9 Income from operations $ 78.0 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? Round to the nearest tenth of a million (one decimal place).$ b. What is McDonald's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).$ Incorrect…