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For a recent year, Wicker Co. owned a restaurants that had the following sales & expenses. Sales $17,700 Food & Packaging $5,965 Payroll 4,500 Occupancy
For a recent year, Wicker Co. owned a restaurants that had the following sales & expenses. Sales $17,700 Food & Packaging $5,965 Payroll 4,500 Occupancy (rent,depreciation, etc) 4,105 General, selling, administrative expenses 2,600 $17,170 Income from operations $530 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and adminstrative expenses. (a) what is Wicker Co. contribution margin? (round to nearest million) (b) What is Wicker Co. contribution margin ratio?(round to one decimal place) (c) How much would income from operations increase if same-store sales increased by $1,100 million for the coming year, with no change in the contribution margin ratio or fixed costs
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