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The Ice City Blades are a minor league ice hockey franchise. Their arena has 5,000 seats, all of which sell for $11 per ticket per game. The team plays 40 games and expects to average 70 percent attendance at each game. Variable costs related to ticket printing, promotions, and mailings are estimated to be $1 per ticket. Fixed costs, including player salaries and operating expenses, total $1.2 million for the season.
Problem 1: If the team sold every ticket to every game, the total sales in dollars would be
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