Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company - owned restaurants had the following sales and expenses ( in millions )

Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
\table[[Sales,$23,900
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $23,900 Food and packaging $7,179 Payroll 6,000 Occupancy (rent, depreciation, etc.)6,501 General, selling, and administrative expenses 3,500 $23,180 Income from operations $720 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.) $fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. fill in the blank 2% c. How much would income from operations increase if same-store sales increased by $1,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $fill in the blank 3 million
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managefirst Managerial Accounting With Pencil/Paper Exam

Authors: National Restaurant Association

1st Edition

0132283417, 978-0132283410

More Books

Students also viewed these Accounting questions

Question

Q.No.1 Explain Large scale map ? Q.No.2 Explain small scale map ?

Answered: 1 week ago