Contribution MarginandContribution Margin Ratio

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

Sales$41,400Food and packaging$(14,524)Payroll(10,400)Occupancy (rent, depreciation, etc.)(9,236)General, selling, and administrative expenses(6,000)$(40,160)Operating income$1,240

Assume that thevariable costsconsist 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.)

$_____million

b.What is McDonald's contribution margin ratio?

____%

c.How much would operating income increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio orfixed costs?Round your answer to the closest million.

$____million