Answer the following questions using the information below:
The following information is for High Corp:
$\begin{array}{lr}
\text { Selling price } & \$ 60 \text { per unit } \
\text { Variable costs } & \$ 40 \text { per unit } \
\text { Total fixed costs } & \$ 125,000
\end{array}$
-If targeted operating income is $50,000,then targeted sales revenue is ________.
A) $525,052
B) $533,333
C) $498,133
D) $517,072

Question

Answer the following questions using the information below:
The following information is for High Corp:
 $\begin{array}{lr}
\text { Selling price } & \$ 60 \text { per unit } \
\text { Variable costs } & \$ 40 \text { per unit } \
\text { Total fixed costs } & \$ 125,000
\end{array}$
-If targeted operating income is $50,000,then targeted sales revenue is ________.
A) $525,052
B) $533,333
C) $498,133
D) $517,072

Quizplus · Accepted Answer

Explanation:Contribution Margin per unit = Selling price per unit - Variable cost per unit = $60 - $40 = $20Contribution Margin Ratio = Contribution Margin per unit / Selling price per unit = $20 / $60 = 1/3Targeted sales revenue = (Targeted operating income + Total fixed costs) / Contribution Margin Ratio= ($50,000 + $125,000) / 1/3 = $525,052

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following