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Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $34,100 Food and
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $34,100 Food and packaging $10,883 Payroll 8,600 Occupancy (rent, depreciation, etc.) 8,597 General, selling, and administrative expenses 5,000 $33,080 Income from operations $1,020 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.) 21,483X million b. What is Wicker Company's contribution margin ratio? Round to one decimal place. 63 X % c. How much would income from operations increase if same-store sales increased by $2,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. 1,260 X million
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