Fast food workers from McDonald’s and other major companies are striking for higher pay.
The strikers are seeking wages of US$15 per hour—about twice the minimum wage.
If McDonald’s doubled wages for all employees, including CEO Don Thompson, Big Macs would cost 68 cents more, increasing from US$3.99 to US$4.67, reports Caroline Fairchild at The Huffington Post.
Dollar Menu items would cost US17c more, according to HuffPo.
Fairchild cites a University of Kansas researcher, who crunched numbers to see what would happen if McDonald’s doubled the salary of every employee then passed that cost on entirely to consumers.
Only 17% of McDonald’s revenue goes toward salary and benefits, according to the report.
That means that the company could increase wages without passing that cost to consumers, and simply make a smaller profit.
McDonald’s CEO Don Thompson told Bloomberg TV last week that the company is an “above minimum-wage employer.”
McDonald’s pays an average hourly wage of US$7.81, according to Glassdoor. This puts it just above the national average of about US$7.50.
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