Question
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $17,800 Food and packaging $4,606 Payroll $4,500 Occupancy (rent,
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
Sales $17,800
Food and packaging $4,606
Payroll $4,500
Occupancy (rent, depreciation, etc.) $5,564
General, selling, and administrative expenses $2,600
Total: $17,270
Income from operations $530
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million
b. What is Wicker Company's 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? Round your answer to the closest million. $ million
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