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# 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:

* The name and nature of the organization
* The activity and time period you used
* The inputs you used and the source for those inputs
* 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.

##### 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.

##### Solution Preview

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 ...

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###### Education
• BSc, University of Virginia
• MSc, University of Virginia
• PhD, Georgia State University
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