For a recent year, McDonald's company-owned restaurants had the following sales and expenses (in millions):
Sales...................................................................$16,233
Food and packaging..................................................$ 5,300
Payroll....................................................................4,121
Occupancy (rent, depreciation, etc.) .................................3,638
General, selling, and administrative expenses.......................2,334
.........................................................................$15,393
Income from operations................................................$ 840
Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.
a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million
b. What is McDonald's contribution margin ratio? Round to one decimal place. %
c. How much would income from operations increase if same-store sales increased by $811 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million