If Q4 revenue must be 150k to achieve an average quarterly revenue of 120k, what should Q4 be?

If Q4 revenue must be 150k to achieve an average quarterly revenue of 120k, what should Q4 be?

• A. 140k
• B. 150k
• C. 130k
• D. 160k

Answer: (B)

To hit an average of 120k across four quarters, the total for the year must be 4 × 120k = 480k. If Q4 is 150k, the first three quarters would need to sum to 480k − 150k = 330k, which means those three quarters would average 110k each—consistent with reaching the overall target. Any other Q4 value changes the total away from 480k (for example, 140k gives 470k total and 117.5k average, 130k gives 460k total and 115k average, 160k gives 490k total and 122.5k average). Therefore, Q4 should be 150k to achieve the 120k average.

To hit an average of 120k across four quarters, the total for the year must be 4 × 120k = 480k. If Q4 is 150k, the first three quarters would need to sum to 480k − 150k = 330k, which means those three quarters would average 110k each—consistent with reaching the overall target. Any other Q4 value changes the total away from 480k (for example, 140k gives 470k total and 117.5k average, 130k gives 460k total and 115k average, 160k gives 490k total and 122.5k average). Therefore, Q4 should be 150k to achieve the 120k average.