For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $40,100 Food and packaging $13,244 Payroll 10,100 Occupancy (rent, depreciation, etc.) 9,756 General, selling, and administrative expenses 5,800 $38,900 Income from operations $1,200 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$ 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 $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$ million
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $40,100 Food and packaging $13,244 Payroll 10,100 Occupancy (rent, depreciation, etc.) 9,756 General, selling, and administrative expenses 5,800 $38,900 Income from operations $1,200 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)$ 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 $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.$ 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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For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
| Sales | $40,100 |
| Food and packaging | $13,244 |
| Payroll | 10,100 |
| Occupancy (rent, |
9,756 |
| General, selling, and administrative expenses | 5,800 |
| $38,900 | |
| Income from operations | $1,200 |
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 $2,400 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$ million
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