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Blizzard Corporation's Contribution Margin Ratio Is 74% and Its Fixed

Question 7

Essay

Blizzard Corporation's contribution margin ratio is 74% and its fixed monthly costs are $43,000. Assume that the company's sales for October are expected to be $102,000.
Required:
Estimate the company's operating profit for October, assuming that the fixed monthly costs do not change.

Correct Answer:

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