Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): $31,600 $12,596 8,000 5,454 4,600 $30,650 $950 Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, d administrative expenses Income from operations 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.) million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $1,900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million

FINANCIAL ACCOUNTING
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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):
$31,600
$12,596
8,000
5,454
4,600
$30,650
Sales
Food and packaging
Payroll
Occupancy (rent, depreciation, etc.)
General, selling, d administrative expenses
Income from operations
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.)
million
$950
b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place.
%
c. How much would income from operations increase if same-store sales increased by $1,900 million for the coming year, with
no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
million
Transcribed Image Text:Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): $31,600 $12,596 8,000 5,454 4,600 $30,650 Sales Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, d administrative expenses Income from operations 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.) million $950 b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $1,900 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million
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