I need help! Can someone explain me question a

Contribution Margin and Contribution Margin Ratio

For a recent year, McDooley's, a family$-$owned group of restaurants, had the following sales and expenses:

Line Item Description Amount Amount

Sales by company$-$operated restaurants $$369,000$

Food and paper $$145,950$

Payroll and employee benefits $88,300$

Occupancy and other expenses $32,190$

Selling, general, and administrative expenses $50,900$

Other operating expenses $($income$)22,140$

Net operating expenses $(339,480)$

Operating income $($loss$)$ $$29,520$

Assume that the variable costs consist of food and paper, payroll and employee benefits, and $40\%$ of the selling, general, and administrative expenses.

a$.$ What is McDooley's contribution margin?

fill in the blank $1$ of $1$$

b$.$ What is McDooley's contribution margin ratio? Round your percentage answer to one decimal place.

fill in the blank $1$ of $1$

$\%$

c$.$ How much would operating income increase if the stores sales increased by $$7,400$ for the coming year, with no change in the contribution margin ratio or fixed costs?

fill in the blank $1$ of $1$$

d$.$ What would have been the operating income or loss for the recent year if sales had been $$7,400$ more? Use a minus sign to indicate an operating loss.

fill in the blank $1$ of $1$$

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