Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

For a recent year, Wicker Company-owned restaurants had the following sales and expense (in millions): $25,200 $10,768 Sales Food and packaging Payroll Occupancy (rent, depreciation,

image text in transcribed

image text in transcribed

For a recent year, Wicker Company-owned restaurants had the following sales and expense (in millions): $25,200 $10,768 Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 6,400 3,572 3,700 $24,440 Income from operations $760 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 $1,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $352,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $70 $50 Gloves 180 110 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats units Baseball gloves units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started