Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company owned restaurants had the following sales and expenses (in millions) Sales $33,500 Food and packaging $13,995 Payroll 8,500 Occupancy (rent, depreciation, etc ) 5,105 General, selling, and administrative expenses 4,...

VC Variable costs FC Fixed costs S Sales CM Contribution Margin R Ratio Cont ...

Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales

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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	$33,500
Food and packaging	$13,995
Payroll	8,500
Occupancy (rent, depreciation, etc.)	5,105
General, selling, and administrative expenses	4,900
	$32,500
Income from operations	$1,000

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 $2,000 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$ million