90.2K

Verified Solution

Link Copied!

eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millions): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.) 7,239 General, selling, and administrative expenses 4,200 $27,840 Income from operations $860 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? million b. What is Wicker Company's contribution margin ratio? % c. How much would income from operations increase if same-store sales increased by $1,700 million for the coming year, with no change in the cont costs? $ million Ch P W , E Check My Work (3maining) eBook Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company, a business consisting of company-owned restaurants, had the following sales and expenses (in millons): Sales $28,700 Food and packaging $9,201 Payroll 7,200 Occupancy (rent, depreciation, etc.) 7,239 General, selling. and administrative expenses 4,200 $27,840 Income from operations $860 Assume that the variable costs consist of food and packaging, payroll, and 40 % of the general, seling, and administrative expenses a. What is Wicker Company's contribution margin? million b. What is Wicker Company's contribution margin ratio? c. How much would income from operations increase if same-store sales increased by $1,700 milion for the coming year, with no change in the contribution margin ratio or fixed Costs? ARAR million Check My Work (3 remaining) 888 4 **

Answer & Explanation Solved by verified expert

See Answer