The Following Information Is for High Corp

question 109

Multiple Choice

The following information is for High Corp:

If targeted operating income is $50,000, then targeted sales revenue is ________. (Round the final answer to the nearest dollar.)

• A) $540,000
• B) $390,000
• C) $150,000
• D) $180,000

---

Definitions:

Level of Activity

A measure of the volume of production or operations, often influencing costs and profitability in a business.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.