For a recent year, Wicker Company-owned restaurants had the following sales and

Question

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

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 $1,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$  million

Sales $19,100 Food and packaging $7,641 Payroll 4,800 Occupancy (rent, depreciation, etc.) 3,289 General, selling, and administrative expenses 2,800 $18,530 Income from operations $570

Explanation / Answer

For a recent year, Wicker Company-owned restaurants had the following sales and

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