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

Sales$15,300

Food and packaging$4,706

Payroll3,900

Occupancy (rent, depreciation, etc.)4,034

General, selling, and administrative expenses2,200 $14,840

Income from operations$460

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 $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

2. Break-Even Sales

Currently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,344,000. A proposal is being evaluated to increase the unit selling price to $460.

a. Compute the current break-even sales (units). _______________units

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $460, and all costs remain constant. __________________ units