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A movie “Beauty and Beast” was released in March 2017, produced by Walt Disney. The estimated budget (or investment) of this movie was $160 million dollars. Assuming the average movie ticket cost $12 dollar each. The share between movie theaters (e.g. AMC) and the studio (or producer) is half and half (50/50).
(1) According to the Break-Even analysis, how many tickets the studio (or producer) has to sell in order to break even?
(2) After the movie was released on March 17th, 2017, the box office for the opening weekend reached up to $170 million dollars. Do you think that the studio (or producer) reached its break-even point after the opening weekend? If not, how many more tickets it had to sell to break-even?
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