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Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the...

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Accounting

Contribution Margin and Contribution Margin Ratio

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):

Sales $31,800
Food and packaging $12,102
Payroll 8,000
Occupancy (rent, depreciation, etc.) 6,148
General, selling, and administrative expenses 4,600
$30,850
Income from operations $950

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million

b. What is Wicker Company's contribution margin ratio? Round to one decimal place. %

c. How much would income from operations increase if same-store sales increased by $1,900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million

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