For a recent year, McDonalds had the following sales andexpenses (in millions):
Sales 15,352
Food andpackaging 5,204
Payroll 4,040
Occupancy (rent, depreciation,etc.) 1,022
General, selling, and administrativeexpenses 2,220
12,468
Income fromoperations 2,866
Assume that the variable costs consist of food and packaging,payroll, and 40% of the general, selling, and administrativeexpenses.
A. What is McDonald's contribution margin? Round to thenearest millionth
B. What is McDonald's contribution margin? Round to thenearest decimal places.
C. How much would income from operating increase if same-storessales increased by $450 million for the coming year, with no chargein the contribution margin ratio or fixed costs?