insmoniac2008
May 22, 2008, 07:46 AM
Here is the ?
Royal Rumble Productions has just finished production of Feature Creatures. The total production cost was $5 million. All actors and personal receive a fixed salary(included in the $5 million) Media Productions will handle marketing and agrees to invest $3 million of its own money. They will be paid 20% of revenues Royal Rumble itself receives from the box office. Royal Rumble receives 62.5% of the total box-office receipts(out of which comes the 20% payment to Media Productions.)
1. What is the Break even point to Royal Rumble expressed in terms of (a) revenues received by Royal Rumble, and (b) total box-office receipts?
2. Assume in its first year of release, the box-office receipts total $300 million. What is the operating income to Royal Rumble from the movie in its first year?
Royal Rumble Productions has just finished production of Feature Creatures. The total production cost was $5 million. All actors and personal receive a fixed salary(included in the $5 million) Media Productions will handle marketing and agrees to invest $3 million of its own money. They will be paid 20% of revenues Royal Rumble itself receives from the box office. Royal Rumble receives 62.5% of the total box-office receipts(out of which comes the 20% payment to Media Productions.)
1. What is the Break even point to Royal Rumble expressed in terms of (a) revenues received by Royal Rumble, and (b) total box-office receipts?
2. Assume in its first year of release, the box-office receipts total $300 million. What is the operating income to Royal Rumble from the movie in its first year?