For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $41,500 Food and packaging $11,585 Payroll 10,500 Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 12,175 6,000 $40,260 $1,240 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.) $ 24,485 x million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. 59 X % c. How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. 1,475 X million.

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $41,500 Food and packaging $11,585 Payroll 10,500 Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 12,175 6,000 $40,260 $1,240 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.) $ 24,485 x million b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place. 59 X % c. How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. 1,475 X million.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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