Question: Contribution MarginandContribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales$36,700Food and packaging$12,435Payroll9,300Occupancy (rent, depreciation, etc.)8,565General,

Contribution MarginandContribution Margin Ratio

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

Sales$36,700Food and packaging$12,435Payroll9,300Occupancy (rent, depreciation, etc.)8,565General, selling, and administrative expenses5,300$35,600Income from operations$1,100

Assume that thevariable costsconsist 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.)

$ million

b.What is Wicker Company's contribution margin ratio? Round to one decimal place.

%

c.How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin ratio orfixed costs? Round your answer to the closest million.

$ million

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