A Revised Income Statement, The Contribution Margin Approach
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This assignment needs to deal with the McDonald's Corporation.
Identify any activity in the organization where you can apply breakeven analysis. You must be able to define:
* A unit of measurement for the activity
* Revenue per unit for the activity
* Variable costs for the activity
* Fixed costs for the period in the activity
If you cannot identify specific actual amounts, make a reasonable estimate (and indicate the method or source of information for that estimate) and apply the tool as if the data were factual.
Required:
Your report should include
* The name and nature of the organization
* The activity and time period you used
* The inputs you used and the source for those inputs
* Your results
* Any implications from your results
In other words, you must do a break-even analysis using the numerical calculations.
Assignment Expectations:
The submission needs to include the break-even analysis in a tabular format as well as a discussion interpreting the analysis. Answer all questions and include references in APA format.
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Solution Summary
Your response includes finding the breakeven in sales for company-owned restaurants using actual data from the 2010 Annual Report for McDonalds. A few sentences interpret the breakeven computation. A link to the annual report is given (file is too big to attach). The pages number where the data was found are given.
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The Organization is McDonalds.
I want to find the breakeven sales for company-owned stores based on 2010 activity (actual) found in the 2010 Annual report. I used actual amounts reported as follows:
Page 26 --> Consolidated Statement of Income identifies company-owned store revenue and expenses in enough detail to ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
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