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For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $41,500 $11,585 10,500 Occupancy
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $41,500 $11,585 10,500 Occupancy (rent, depreciation, etc.) 12,175 General, selling, and administrative expenses 6,000 $40,260 $1,240 Income from operations 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.) 24,485 X million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. 59 X % c. How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. 1,475 X million
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