What revenue level would clarity break-even

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Reference no: EM132566817

Clarity Company's operating percentages were as follows:

Revenues 100%

Cost of goods sold

Variable 50%

Fixed 10% 60%

Gross profit 40%

Other operating

expenses

Variable 20%

Fixed 15% 35%

Operating income 5%

Question 1: Clarity's sales totaled P2 million. At what revenue level would Clarity break-even?

Option a: P1,900,000

Option b: P1,250,000

Option c: P1,666,667

Option d: P 833,333

Reference no: EM132566817

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