For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):
Sales $19,000
Food and packaging $8,140
Payroll 4,800 Occupancy (rent, depreciation, etc.) 2,690
General, selling, and administrative expenses 2,800
$18,430
Income from operations $570
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 tenth of a million (one decimal place).
b. What is McDonald's contribution margin ratio? Round to one decimal place.
c. How much would income from operations increase if same-store sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest tenth of a million (one decimal place).