Contribution Margin and Contribution Margin Ratio For a recent year, McDooley's, a family-owned group of restaurants, had the following sales and expenses: Sales for all restaurants Food and paper Payroll and employee benefits $241,000 $107,420 57,600 Occupancy and other expenses 8,940 Selling, general, and administrative expenses 33,300 Other operating expenses 14,460 Net operating expenses Operating income (loss) (221,720) $19,280 Assume that the variable costs consist of food and paper, payroll and employee benefits, and 40% of the selling, general, and administrative expenses. a. What is McDooley's contribution margin? 42,680 X b. What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place. 17.7 X % c. How much would operating income increase if the stores sales increased by $4,800 for the coming year, with no change in the contribution margin ratio or fixed costs? 85,005 X d. What would have been the operating income or loss for the recent year if sales had been $4,800 more? Feedback