Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):
Sales by company operated restaurants
$12,719
Food and paper
$4,034
Payroll and employee benefits
3,529
Occupancy and other expenses
2,848
Selling, general, and administrative expenses
2,231
Other operating income
(1,163)
Net operating expenses
(11,479)
Operating income (loss)
$1,240
Assume that the variable costs consist of food and paper, payroll and employee benefits, and 35% of the selling, general, and administrat