For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $20,300 Food and packaging $7,707 Payroll 5,100 Occupancy (rent, depreciation, etc.) 3,883 General, selling, and administrative expenses 3,000 $19,690 Income from opentinne t610 Costs that vary in total dollar amount as the level of activity changes. 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 to one decimal place. % c. How much would income from operations increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $20,300 Food and packaging $7,707 Payroll 5,100 Occupancy (rent, depreciation, etc.) 3,883 General, selling, and administrative expenses 3,000 $19,690 Income from opentinne t610 Costs that vary in total dollar amount as the level of activity changes. 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 to one decimal place. % c. How much would income from operations increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Contribution margin and contribution margin ratio For a recent year, McDonalds (MCD) company-owned...

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