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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
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