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For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $21,700 Food and packaging
For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $21,700 Food and packaging $5,372 Payrol 5.500 occupancy (rent, depreciation, 6,978 etc.) General, selling, and 3200 administrative expenses $21,050 Income from operations $650 Assume that the variable cost consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? b. What is Wicker Company's contribution margin ratio? c. How much would income from operations increase if same-store sales increased by $1,300 million for the coming year, with no change in the contribution margin ratio or fixed costs
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