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2. McDonalds sells their Quarter Pounder with cheese Combo for $8.79. The cost for packaging, paper products, etc. is .45 food product cost is 2.99 for, and .75 for the labor of the kitchen staff to make the one combo. Micky D's has fixed cost as a company of $95,975,000. Answer the following questions: A. What is McDonalds variable cost for one combo? B. What is McDonalds contribution for the combo? C. How many combos does McDonalds have to sell to breakeven? D. How much profit does McDonalds make on the next combo that they sell after breaking even? 

          2. McDonalds sells their Quarter Pounder with cheese Combo for $8.79. The cost for
packaging, paper products, etc. is .45 food product cost is 2.99 for, and .75 for the labor of
the kitchen staff to make the one combo. Micky D's has fixed cost as a company of
$95,975,000.
Answer the following questions:
A. What is McDonalds variable cost for one combo?
B. What is McDonalds contribution for the combo?
C. How many combos does McDonalds have to sell to breakeven?
D. How much profit does McDonalds make on the next combo that they sell after breaking even?
Show more…
2. McDonalds sells their Quarter Pounder with cheese Combo for 8.79. The cost for packaging, paper products, etc. is .45 food product cost is 2.99 for, and .75 for the labor of the kitchen staff to make the one combo. Micky D's has fixed cost as a company of95,975,000. Answer the following questions: A. What is McDonalds variable cost for one combo? B. What is McDonalds contribution for the combo? C. How many combos does McDonalds have to sell to breakeven? D. How much profit does McDonalds make on the next combo that they sell after breaking even?

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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McDonald's sells their Quarter Pounder with cheese Combo for $8.79. The cost for packaging, paper products, etc. is $4.5. The food product cost is $2.99, and the labor cost for the kitchen staff to make one combo is $0.75. Micky D's has fixed costs as a company of $95,975,000. Answer the following questions: A. What is McDonald's variable cost for one combo? B. What is McDonald's contribution for the combo? C. How many combos does McDonald's have to sell to break even? D. How much profit does McDonald's make on the next combo that they sell after breaking even?
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Transcript

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00:01 Firstly, we need to evaluate the contribution margin.
00:12 So, for that evaluating variable cost, sorry, it is evaluated as sales wherein we subtract variable cost.
00:32 So, putting in the values 15295 .0 wherein we subtract food and packaging value which is 4896 .9 wherein we add payroll which is 4134 .2 to which we add 40 % multiplied by general selling and administrative expense which is of the value 2384 .5.
01:11 So, then equating it we get the value to be 15295 .0 wherein we subtract 9984 .9.
01:22 So, we get the value to be 5310 .1 million dollars...
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