For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $39,300 Food and packaging $14,151 Payroll 9,900 Occupancy (rent, depreciation, etc.) 8,369 General, selling, and administrative expenses 5,700 $38,120 Income from operations $1,180 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.) $fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. fill in the blank 2 % c. How much would income from operations increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $fill in the blank 3 million
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $39,300 Food and packaging $14,151 Payroll 9,900 Occupancy (rent, depreciation, etc.) 8,369 General, selling, and administrative expenses 5,700 $38,120 Income from operations $1,180 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.) $fill in the blank 1 million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. fill in the blank 2 % c. How much would income from operations increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $fill in the blank 3 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
| Sales | $39,300 |
| Food and packaging | $14,151 |
| Payroll | 9,900 |
| Occupancy (rent, |
8,369 |
| General, selling, and administrative expenses | 5,700 |
| $38,120 | |
| Income from operations | $1,180 |
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.)
$fill in the blank 1 million
b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place.
fill in the blank 2 %
c. How much would income from operations increase if same-store sales increased by $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$fill in the blank 3 million
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