1. Contribution Margin and Contribution Margin Ratio

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

   Sales	$29,900
   Food and packaging	$10,773
   Payroll	7,500
   Occupancy (rent, depreciation, etc.)	6,327
   General, selling, and administrative expenses	4,400
   	$29,000
   Income from operations	$900

   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 income from operations increase if same-store sales increased by $1,800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million