Question: Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $33,700 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 $33,700 Food and packaging $8,412 Payroll 8,500 Occupancy (rent, depreciation, etc.) 10,878 General, selling, and administrative expenses 4,900 $32,690 Income from operations $1,010 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 Help please.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
