For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $14,100 Food and packaging $5,994 Payroll 3,600 Occupancy (rent, depreciation, etc.) 1,986 General, selling, and administrative expenses 2,100 $13,680 Income from operations $420 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 your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $800 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 $14,100 Food and packaging $5,994 Payroll 3,600 Occupancy (rent, depreciation, etc.) 1,986 General, selling, and administrative expenses 2,100 $13,680 Income from operations $420 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 your answer to one decimal place. % c. How much would income from operations increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. million
Chapter1: Financial Statements And Business Decisions
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1. TMM.21.01
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
2. TMM.21.02
Sales
$14,100
3. TMM.21.03
Food and packaging
$5,994
Рayroll
3,600
4. TMM.21.04
Occupancy (rent, depreciation, etc.)
1,986
5. EX.21,01
General, selling, and administrative expenses
2,100
$13,680
6. EX.21.02
Income from operations
$420
7. EX.21.03
Assume that the variable costs consist of food and packaging; payroll; and 40% of the general, selling, and administrative expenses.
8. EX.21.06.ALGO
a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)
million
9. EX.21.09.ALGO
b. What is Wicker Company's contribution margin ratio? Round your answer to one decimal place.
10. EX.21.10.ALGO
%
c. How much would income from operations increase if same-store sales increased by $800 million for the coming year, with no change in the
11. EX.21.13 ALGO
contribution margin ratio or fixed costs? Round your answer to the closest million.
million
12. EX.21.14.ALGO
13. PR.21.01A
14. PR.21.02.ALGO
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