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Recently, Uber released its financial statements for the year ended Dec 31 2021 (Appendix A). Uber showed a loss of $570 million on sales of

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Recently, Uber released its financial statements for the year ended Dec 31 2021 (Appendix A). Uber showed a loss of $570 million on sales of 17.455 billion. Some analysts are quick to blame Covid-19 for this loss, but others pointed to bigger long-term issues and reminded investors that Uber has consistently lost money over the past few years, and generated a loss of $8.5 billion on sales of 13.0 billion in 2019 (a year before Covid, also known as the- before-times). For simplicity purposed, assume the following cost structure: Cost of Revenues and Operations & Support expenses are all variable Sales and Marketing, R+D, General + Administrative, and Depreciation + Amortization expenses are all fixed. Interest Expense, Other income (expense), and tax and loss from equity method can be ignored for this analysis 1. Based on the financial information in Appendix A, how much would revenues have to have been in 2021 in order for Uber to break even? 2. What level of Revenue would Uber need to have reached in 2021 to make a profit of $2 billion. 3. What percentage increase would Contribution Margin need to increase in order for Uber to break-even on Revenues of $19 billion (assuming that fixed costs do not change)

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