Question

A movie costs $40 million to produce and $45 million to promote and distribute. The movie's total revenue from ticket sales is forecast to be 18% above costs, with 28% of revenue from U.S. sales and the balance from overseas. What is the TOTAL estimated revenue? How much of the revenue will come from the United States? How much will come from overseas?

a) $94 million, $26.32 million, $67.68 million
b) $85 million, $23.8 million, $61.2 million
c) $90 million, $25.2 million, $64.8 million
d) $100 million, $28 million, $72 million

Answer 1

The total estimated revenue from the movie is approximately $100 million, with about $28 million from U.S. sales and around $72 million from overseas sales.

Step-by-step explanation:

To calculate the total estimated revenue for the movie, we first need to determine the total cost of production and promotion. The production cost is $40 million, and the promotional and distribution cost is $45 million, resulting in a total cost of $40 million + $45 million = $85 million.

Next, we are told that the total revenue from ticket sales is forecast to be 18% above costs. So, we calculate 18% of $85 million which is $85 million * 0.18 = $15.3 million. Adding this to the total cost gives us the total estimated revenue: $85 million + $15.3 million = $100.3 million.

Now, to find the revenue from U.S. sales, we take 28% of the total estimated revenue: $100.3 million * 0.28 = $28.084 million. For the revenue from overseas, we subtract the U.S. revenue from the total revenue: $100.3 million - $28.084 million = $72.216 million.

When rounding to two decimal places for clarity, we obtain: total estimated revenue of approximately $100 million, U.S. revenue of about $28 million, and the overseas revenue of around $72 million.