For a recent year, McDonald's company-owned restaurants had the following sales sales and expenses (in millions)
Sales $24,075
food & packaging $5,300
payroll 4,122
occupancy (rent, depreciation,etc) 5,106
general, selling & admin expenses 2,333
total $16,602
income from operations $7,473
Assume that the variable costs consists of food and packaging, payroll and 60% of the general, selling & admin expenses
a. What is McD's contribution margin (rounded to nearest mill)
b. What is McD's contribution margin ratio (round to nearest decimal)
c. How much would income from operations increase if same-store sales increased by $600 million for the coming year, with no change in the contribution margin ratio or fixed costs?