For a recent year, mcdugal's company-owned restaurants had the following sales and expenses (in millions): sales $34,300 food and packaging $14,545 payroll 9,100 occupancy (rent, depreciation, etc.) 5,455 general, selling, and admin. expenses 5,200 other expense 690 total expenses (34,990) operating income (loss) $(690) 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. $ 8,575 million b. what is mcdonald's contribution margin ratio? round your percentage answer to one decimal place. 25 % c. how much would operating income increase if same-store sales increased by $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? $ 180 million d. what would have been the operating income or loss for the recent year if sales had been $2,100 million more? $ -510 million

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?