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.
What is Wicker Company's contribution margin? Round to the nearest million. (Give answer
in millions of dollars.)
$fill in the blank 1 million
What is Wicker Company's contribution margin ratio? Round your answer to one decimal
fill in the blank 2 %
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