Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...

 

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Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $33,400 $10,682 8,400 Occupancy (rent, depreciation, etc.) 8,418 General, selling, and administrative expenses 4,900 $32,400 Income from operations $1,000 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.) X million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. X % 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. X million Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales Food and packaging Payroll $33,400 $10,682 8,400 Occupancy (rent, depreciation, etc.) 8,418 General, selling, and administrative expenses 4,900 $32,400 Income from operations $1,000 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.) X million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. X % 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. X million

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Given Data Sales 33400 million Food and packaging expenses 10682 million Payroll expenses 8400 milli... View the full answer