Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $37,000 Food and packaging $10,000 Payroll 9,300 Occupancy (rent, depreciation, etc.) 11,190 General, selling, and administrative expenses 5,400 $35,890 Income from operations $1,110 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ 145,871, x million b. What is McDonald's contribution margin ratio? % C. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Feedback Check My Work 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 Learning Objective 2