For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):...
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Accounting
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
Sales
$32,800
Food and packaging
$9,132
Payroll
8,300
Occupancy (rent, depreciation, etc.)
9,588
General, selling, and administrative expenses
4,800
$31,820
Income from operations
$980
Assume that the Costs that vary in total dollar amount as the level of activity changes.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 $2,000 million for the coming year, with no change in the contribution margin ratio or Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs? Round your answer to the closest million. $
million
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