Contribution Margin and contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants $339,000 Food and paper $151,040 Payroll and employee benefits 81,100 Occupancy and other expenses 12,600 Selling, general, and administrative expenses 46,800 Other operating expenses 20,340 Net operating expenses (311,880) Operating income (loss) $27,120 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. % c. How much would operating Income Increase if the stores sales increased by $6,800 for the coming year, with no change in the contribution margin ratio of fixed costs