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.
What will be an ideal response?
| Sales | $ | 102,000 | |
| CM ratio | 74 | % | |
| Contribution margin (sales × contribution margin ratio) | $ | 75,480 | |
| Fixed costs | 43,000 | ||
| Operating profit | $ | 32,480 |
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