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High places studio

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Dinesh Pupala

A movie studio considered releasing a mystery movie in the summer or not in the summer. If released in the summer there was a 50% chance of it being a disappointment earning $26.5 million in revenue with costs of $35 million, or a 50% chance of being a hit earning $53.92 million in revenue. If not released in the summer there was a 30% chance of disappointment earning $2.73 million in revenue with costs of $60 million, or a 70% chance of being a hit earning $75 million in revenue plus $2.73 million in revenue from the disappointment scenario, for total expected revenue of $3.48 million.

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Movie Profit = 3mn HBO Direc tors 180mn Blockbuster - 20% 80mn Morgan-70% Disappointment - 30% Hit - 50% 35mn Hit - 50% 30mn 45mn Revenue - 30mn Cost =35mn Cost= 60mn 60% 40% Mystery Not Released in Summer Released in Summer Disappointment - 50% Mc Manus-30% Revenues 26.53.92.73 0.75 0.75+2.73=3.48

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High places studio

  • 1. Movie Profit = 3mn HBO Direc tors 180mn Blockbuster - 20% 80mn Morgan-70% Disappointment - 30% Hit - 50% 35mn Hit - 50% 30mn 45mn Revenue - 30mn Cost =35mn Cost= 60mn 60% 40% Mystery Not Released in Summer Released in Summer Disappointment - 50% Mc Manus-30% Revenues 26.53.92.73 0.75 0.75+2.73=3.48