Contribution MarginandContribution Margin Ratio

For a recent year,McDugal'scompany-owned restaurants had the following sales and expenses (in millions):

Sales$40,000

Food and packaging$12,560

Payroll 10,600

Occupancy (rent, depreciation, etc.) 10,740

General, selling, and admin. expenses6,100

Other expense 800

Total expenses (40,800)

Operating income (loss) $(800)

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? Enter your answer in million, rounded to one decimal place.

$________________million

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

________________%

c.How much would operating income increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio orfixed costs?

$______________million

d.What would have been the operating income or loss for the recent year if sales had been $2,400 million more?

$_________________million

e.To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number.

$____________________million