# Contribution Margin and Contribution Margin Ratio For a recent year,

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Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales \$41,000 Food and packaging \$15,590 Payroll 10,300 Occupancy (rent, depreciation, etc.) 7,880 General, selling, and administrative expenses 6,000 \$39,770 Income from operations \$1,230 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.) \$fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. fill in the blank 2 % 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. \$fill in the blank 3 million
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