Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following...

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Contribution Margin and Contribution Margin Ratio For a recent year, McDugals company-owned restaurants had the following sa

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative ex

business accounting

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Answer 1

Answer #1

e) Fixed costs= Occupancy+General, selling and admin. expenses+Other expense

= $4440+(2200*60%)+290

= $6050 million

Break even point= Fixed cost/Contribution margin ratio

= $6050/40%

= $15125 million

Sales need to increase= $15125-14400

= $725 million

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Answer 2

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