How are Targets related to projected sales?

The Sales projection is not a financially accurate projection. It, however, has to be accurate enough to determine the Target and, therefore, the Safe Zone between Red and Green.

When the average sales are stable, the Target will be closer to the average sales due to its relatively high predictability. On the other hand, when the average sales are constantly fluctuating, the Target will become relatively higher than the average sales because of its high unpredictability.