Question

Q) Lucid Images Ltd manufactures premium OLED televisions. The firm's fixed costs are $4,000,000 per year. The variable cost of each TV is $2000, and the TVs are sold for $3000 each. The company sold 5000 TVs during the previous year. With Covid-19, Lucid Images expects fixed costs to increase by 10% and a reduction in the sales price to $2500 in 2021.

In order for the company to break-even, how much sales revenue would Lucid Image need to generate in 2021? For this question, show your final answer below and your workings in the box provided in the next question's answer box section.

Answer 1

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