1-A company requires $1,700,000 in sales to meet its operating income target. Its contribution margin is 30%, and fixed costs are $300,000. What is the target operating income?

Select one:

a. $110,000

b. $890,000

c. $700,000

d. $390,000

e. $210,000

2-Alvarez Company is considering the following alternatives:

Alternative A Alternative B

Revenues $50,000 $60,000

Variable costs 30,000 30,000

Fixed costs 10,000 16,000

What are the relevant revenues?

Select one:

a. 60,000

b. 50,000

c. 4,000

d. 6,000

e. 10,000