Question: Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $27,500 Food and

Contribution Margin and Contribution Margin Ratio

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

Sales $27,500
Food and packaging $7,725
Payroll 6,900
Occupancy (rent, depreciation, etc.) 8,055
General, selling, and administrative expenses 4,000
$26,680
Income from operations $820

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

c. How much would income from operations increase if same-store sales increased by $1,700 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.

$ million

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