How much would income from operations increase if

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Reference no: EM13604857

For a recent year, Wicker Co. owned a restaurants that had the following sales & expenses.

Sales $17,700
Food & Packaging $5,965
Payroll 4,500
Occupancy (rent,depreciation, etc) 4,105
General, selling, administrative expenses 2,600
$17,170
Income from operations $530

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and adminstrative expenses.

(a) what is Wicker Co. contribution margin? (round to nearest million)
(b) What is Wicker Co. contribution margin ratio?(round to one decimal place)
(c) How much would income from operations increase if same-store sales increased by $1,100 million for the coming year, with no change in the contribution margin ratio or fixed costs?

Reference no: EM13604857

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