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For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $23,900 Food and packaging $8,135 Payroll 6,000 Occupancy (rent,
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $23,900 Food and packaging $8,135 Payroll 6,000 Occupancy (rent, depreciation, etc.) 5,545 General, selling, and administrative expenses 3,500 $23,180 Income from operations $720 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 $1,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
Sales $23,900
Food and packaging $8,135
Payroll 6,000
Occupancy (rent, depreciation, etc.) 5,545
General, selling, and administrative expenses 3,500
$23,180
Income from operations $720
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 $1,400 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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