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 expenes sale $35, 800 Food and packaging $8, 968 payroll 9, 000 occupancy(ront, depredation, etc.) 11, 562 General, selling, and administrative expenses 5, 200 $34, 730 Income from operations $1, 070 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling and adminlstrative erpenses. a.what is wicker company's contribution margin? Round to the mearest million.[Give answer in millions of dollars] b.What is wicker company's company's contribution margin ratio? Round to one dedmal rlace. c.How much would income from operations increase if same-store sales increased by $2, 100 million for the coming year, with no in the contribution margin Round your answer to the closest million.

Explanation / Answer

Increase in income from operations:

= Increase in sales×Contribution margin ratio

= $2,100 million×44%

= $924 million

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