For a recent year, McDonald€™s 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 McDonald€™s contribution margin? Round to the nearest million.
b. What is McDonald€™s contribution margin ratio? Round to one decimal place.
c. How much would income from operations increase if same-store sales increased by $400 million for the coming year, with no change in the contribution margin ratio or fixed costs?

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Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses $16,561 $ 5,586 4,300 3,767 2,355 $16,008 $ 553 Income from operations