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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.


Definitions:

Social Security

A government program designed to provide financial assistance to individuals during retirement, disability, or in other circumstances warranting support.

Small Businesses

Enterprises with limited revenue and number of employees, playing a significant role in the economy by offering innovation and employment.

First-time Business Owners

Individuals who are starting and owning a business for the first time, often facing unique challenges and learning experiences.

Initial Sales

The first sales activity that occurs when a product or service is introduced to the market.

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