Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $35,900 Food and packaging $10,360 Payroll 9,100 Occupancy (rent, depreciation, etc.) 10,160 General, selling, and administrative expenses 5,200 $34,820 Income from operations $1,080 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 one decimal place. % c. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin rat or fixed costs? Round your answer to the closest million. million

Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $35,900 Food and packaging $10,360 Payroll 9,100 Occupancy (rent, depreciation, etc.) 10,160 General, selling, and administrative expenses 5,200 $34,820 Income from operations $1,080 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 one decimal place. % c. How much would income from operations increase if same-store sales increased by $2,200 million for the coming year, with no change in the contribution margin rat 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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Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $35,700 Food and packaging $11,768 Payroll 9,000 Occupancy (rent, depreciation, etc.) 8,662 General, selling, and administrative expenses 5,200 $34,630 Income from operations $1,070 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 $2,100 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million million $ Check My Work 2 more Check My Work uses remaining. Previous Next
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