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Accounting Assignment | Custom Assignment Help

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October 4th, 2019

I am unsure how to find break even points and contribution margins with the information given in order to solve the problem. Basically I need to find the break even point in revenue received and in box office receipts but I am unsure how when I feel I am missing much of the equations.

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We know:

Budget of the movie is 21 million, with 2 contracts offered for the director and stars of the movie:

a. Fixed-salary component of $15 million  with no residuals

B. Fixed-salary component of $3million with 15 percent of residuals of the revenue of the film.

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Marketers invest $10 million of its own money and gets 25% of box office recipients. the film company receives 62.5% of the total box-office receipts (out of which comes the 25% payment to marketers)

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