Contribution Margin and Contribution Margin Ratio

For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions):

Sales		$24,700
Food and packaging	$9,270
Payroll	6,500
Occupancy (rent, depreciation, etc.)	5,130
General, selling, and admin. expenses	3,800
Other expense	490
Total expenses		(25,190)
Operating income (loss)		$(490)

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? Enter your answer in million, rounded to one decimal place. $ 7,410 million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. 30 % c. How much would operating income increase if same-store sales increased by $1,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? $ 450 million d. What would have been the operating income or loss for the recent year if sales had been $1,500 million more? $ 25,710 x million e. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number. $ 6,066 x million