Question
In: Accounting
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):
Sales : $19,700
Food and Packaging: $7630
Payroll: $5000
Occupancy: $3580
General expenses: $2,900
Total: $19,110
Income from operations: $590
a. What is Wicker Company's contribution margin?
Round to the nearest million. (Give answer in millions of
dollars.)Assume that the variable costs consist of food and
packaging, payroll, and 40% of the general, selling, and
administrative expenses.
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 $1,200 million for the
coming year, with no change in the contribution margin ratio or
fixed costs? Round your answer to the closest million.
Solutions
Expert Solution
| Total | Variable cost | fixed cost | ||||
| Sales | 19700 | |||||
| Food package | 7630 | 7630 | ||||
| Payroll | 5000 | 5000 | ||||
| Occupancy (rent, depreciation etc.) | 3580 | 3580 | ||||
| General , selling and administrative expenses | 2900 | 1160 | 1740 | |||
| $19,110 | $13,790 | $5,240 | ||||
| Income from operation | $590 | |||||
| Ans a) | contribution margin = Sales - variable cost | $5,910 | ||||
| 19700-13,790 | ||||||
| Ans b) | Contribution margin ratio = 5,910/19,700 | 30.00% | ||||
| Ans c) | Increase in income | |||||
| Incremental sales * Contribution margin ratio | $360.00 | |||||
| 1200*30% | ||||||
ekkarill92 answered 2 years agoRelated Solutions
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$14,700
Food and packaging
$6,044
Payroll
3,700
Occupancy (rent, depreciation, etc.)
2,416
General, selling, and administrative expenses
2,100
$14,260
Income from operations
$440
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...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$25,600
Food and packaging
$6,356
Payroll
6,500
Occupancy (rent, depreciation, etc.)
8,274
General, selling, and administrative expenses
3,700
$24,830
Income from operations
$770
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...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio For a recent
year, Wicker Company-owned restaurants had the following sales and
expenses (in millions): Sales $33,700 Food and packaging $8,412
Payroll 8,500 Occupancy (rent, depreciation, etc.) 10,878 General,
selling, and administrative expenses 4,900 $32,690 Income from
operations $1,010 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...
1. Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the...
1.
Contribution Margin and Contribution Margin Ratio
For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$32,100
Food and packaging
$8,317
Payroll
8,100
Occupancy (rent, depreciation, etc.)
10,023
General, selling, and administrative expenses
4,700
$31,140
Income from operations
$960
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...
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDugal's company-owned
restaurants had the following sales and expenses (in millions):
Sales
$27,300
Food and packaging
$7,227
Payroll
7,200
Occupancy (rent, depreciation, etc.)
8,673
General, selling, and admin. expenses
4,200
Other expense
550
Total expenses
(27,850)
Operating income (loss)
$(550)
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Enter your answer in...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald's Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$34,300
Food and packaging
$8,851
Payroll
8,700
Occupancy (rent, depreciation, etc.)
10,719
General, selling, and administrative expenses
5,000
$33,270
Income from operations
$1,030
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Round to the nearest million. (Give answer in millions...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's Company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald's Company-owned restaurants had the
following sales and expenses (in millions):
Sales
$27,400
Food and packaging
$7,118
Payroll
6,900
Occupancy (rent, depreciation, etc.)
8,562
General, selling, and administrative expenses
4,000
$26,580
Income from operations
$820
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Round to the nearest million. (Give answer in millions...
Contribution Margin and Contribution Margin Ratio For a recent year, McDugal's company-owned restaurants had the following...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDugal's company-owned
restaurants had the following sales and expenses (in millions):
Sales
$40,300
Food and packaging
$14,224
Payroll
10,700
Occupancy (rent, depreciation, etc.)
9,176
General, selling, and admin. expenses
6,200
Other expense
810
Total expenses
(41,110)
Operating income (loss)
$(810)
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Enter your answer in...
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned restaurants had the...
Contribution Margin and Contribution Margin Ratio
For a recent year, McDonald’s (MCD)
company-owned restaurants had the following sales and expenses (in
millions):
Sales
$35,500
Food and packaging
$(10,575)
Payroll
(9,000)
Occupancy (rent, depreciation, etc.)
(9,665)
General, selling, and administrative expenses
(5,200)
$(34,440)
Operating income
$1,060
Assume that the variable costs consist of food and packaging,
payroll, and 40% of the general, selling, and administrative
expenses.
a. What is McDonald's contribution margin?
Round to the nearest million. (Give answer in
millions...
1. For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):...
1. For a recent year, Wicker Company-owned restaurants had the
following sales and expenses (in millions):
Sales$15,300
Food and packaging$4,706
Payroll3,900
Occupancy (rent, depreciation, etc.)4,034
General, selling, and administrative expenses2,200 $14,840
Income from operations$460
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT