Contribution MarginandContribution Margin Ratio

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

Sales$23,500Food and packaging$(8,250)Payroll(5,900)Occupancy (rent, depreciation, etc.)(5,250)General, selling, and administrative expenses(3,400)$(22,800)Operating income$700

Assume that thevariable costsconsist 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 $1,400 million for the coming year, with no change in the contribution margin ratio orfixed costs?Round your answer to the closest million.

$million