Contribution margin and contribution margin ratio

For a recent year, McDonald's $($MCD$)$ company$-$owned restaurants had the following sales and expenses $($in millions$)$:

Assume that the variable costs consist of food and paper, payroll, $25\%$ of occupancy and other expenses, and $40\%$ of the general, selling, and

administrative expenses.

a$.$ What is McDonald's contribution margin?

$x$ million

b$.$ What is McDonald's contribution margin ratio? Round to one decimal place.

X $\%$

c$.$ How much would operating income increase if same$-$store sales increased by $$1,000$ million for the coming year, with no change in the

contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million $($one decimal place$).$

$x$ million

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a$.$ Sales minus total variable costs equals contribution margin.

b$.$ Contribution margin divided by sales equals contribution margin ratio.

c$.$ Multiply the sales increase by the contribution margin percentage.