Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $26,300 Food and packaging $(8,186) Payroll (6,600) Occupancy (rent, depreciation, etc.) (6,924) General, selling, and administrative expenses (3,800) $(25,510) Operating income $790 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is McDonald's contribution margin ratio? % C. How much would operating income increase if same-store sales increased by $1,600 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $630,200 296,000 February 702,700 331,000 March 496,600 214,000 April 673,700 320,000 May 565,000 258,000 June 724,400 348,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost