1.

Contribution Margin and Contribution Margin Ratio

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):

Sales	$32,100
Food and packaging	$8,317
Payroll	8,100
Occupancy (rent, depreciation, etc.)	10,023
General, selling, and administrative expenses	4,700
	$31,140
Income from operations	$960

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 $1,900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million

2.

Break-Even Sales and Sales to Realize Income from Operations

For the current year ending October 31, Yentling Company expects fixed costs of $533,200, a unit variable cost of $64, and a unit selling price of $95.

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize income from operations of $124,000. units

3.

Break-Even Sales

Currently, the unit selling price of a product is $240, the unit variable cost is $200, and the total fixed costs are $476,000. A proposal is being evaluated to increase the unit selling price to $270.

a. Compute the current break-even sales (units). units

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $270, and all costs remain constant. units

4.

Sales Mix and Break-Even Sales

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $836,000, and the sales mix is 30% bats and 70% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products	Unit Selling Price		Unit Variable Cost
Bats	$70		$50
Gloves	180		110

a. Compute the break-even sales (units) for both products combined. units

b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?

Baseball bats	units
Baseball gloves	units