1650000 500000 April 1860000 600000 May 1440000 400000 June 1566000 460000

1650000 500000 april 1860000 600000 may 1440000

This preview shows page 4 - 6 out of 7 pages.

1,650,000 500,000 April1,860,000 600,000 May1,440,000 400,000 June1,566,000 460,000 Determine the variable cost per gross-ton mile and the total fixed costVariable cost (If required, round to two decimal places.) . Total fixed cost$19-9Contribution Margin Ratioa. Segar Company budgets sales of $3,200,000, fixed costs of $700,000, and variable costs $2,240,000. What is the contribution margin ratio for Segar Company? (Enter your answer as a whole number.) of 2. 25 2. 1600, 000 30
Image of page 4
b. If the contribution margin ratio for Domino Company is 35%, sales were $2,100,000, and fixed costs were $400,000, what was the income from operations? Contribution Margin and Contribution Margin RatioFor a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):Sales$18,602.5Food and packaging$ 6,318.2Payroll4,710.3Occupancy (rent, depreciation, etc.)4,195.2General, selling, and administrative expenses2,445.217,668.9Income from operations$ 933.6Assume 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 to one decimal place. c. How much would income from operations increase if same-store sales increased by $900 million forthe 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).
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 7 pages?

  • Spring '17
  • Robert K. Smolin

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture