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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:

    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 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 ...

    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.

    $2.19

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