4. Jason Bourne is in film making business who specializes in making sequels. He

Question

4. Jason Bourne is in film making business who specializes in making sequels. He buys the rights of successful movies and makes sequels. From his experience he knows that each sequel costs 18% higher than the previous movie in the same series due to inflation and higher salary asked by the key actors, whereas the revenue declines by 14% due to diminishing popularity. He decides to buy the rights of the 2015 hit movie Pixels. Pixels grossed $240 million in Box office and was produced with a budget of $90 million. How many profitable sequels will Jason be able to make?

Explanation / Answer

Formulas:

Jason Can make 3 sequels after that he will earn losses, so max three sequels possible.

Gross Budget Profit Original 240 90 150 Sequel 1 206.4 106.2 100.2 Sequel 2 177.504 125.316 52.188 Sequel 3 152.6534 147.87288 4.78056 Sequel 4 131.282 174.49 -43.208

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.