To solve the problem, you have to solve for the total cost
by getting the sum of fixed and variable costs:
$70,000 + $2,000 = $72,000 total cost
Then, use the formula of solving for the operating income (Revenue - Total Costs = Operating Income).
The problem is looking for the revenue, here’s how to solve
for it:
Let x be the revenue:
X - $72,000 = $180,000
X = $180,000 + $72,000
X = $252,000
