Answer A. Mcdonald contribution is $ 6288 million (As per Sheet enclosed in last)
Answer B. Mcdonald contribution margin is 34.61% (As per Sheet enclosed in last)
Answer C. If same store sales increased by $ 500 million in coming year than the Income from operation will increase by $173.05 million.
WORKING SHEET
Mcdonald Ratio's | |||||||
IN MILLIONS | IF SALES INCREASED BY 500 M | ||||||
SALES | 18169.30 | 18669.30 | |||||
TOTAL A | 18169.30 | 18669.30 | |||||
LESS VARIABLE COST: | |||||||
FOOD & PACKAGING | 6129.70 | ||||||
PAYROLL | 4756.00 | ||||||
GEN.,SELLING, & ADM EXP | |||||||
(40%) OF 2487.90 | 995.16 | ||||||
TOTAL B | 11880.86 | ||||||
CONTRIBUTION A-B | 6288.44 | 6461.4913 | |||||
CONTRIBUTION IN % | 34.61024916 | 34.610249 | |||||
FIXED EXPENSES | |||||||
OCCUPANCY (RENT & DEP.) | 4402.60 | ||||||
GEN. SELLING & ADM EXP. 60% | 1492.74 | ||||||
(TOTAL EXP ARE 2487.90 MILLION) | |||||||
TOTAL C | 5895.34 | 5895.34 | |||||
NET PROFIT | 393.10 | 566.15 | |||||
increasae in profits will be | 173.05 | ||||||
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