Alocal pbs station has decided to produce a tv series on

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Reference no: EM13567623

A local PBS station has decided to produce a TV series on state-of-the-art manufacturing. The director of the TV series, Justin Tyme, is currently attempting to analyze some of the projected costs for the series. Tyme intends to take a TV production crew on location to shoot various manufacturing scenes as they occur. If the four-week series is shown in the 8:00-9:00 P.M. primetime slot, the station will have to cancel a wildlife show that is currently scheduled. Management projects a 10 percent viewing audience for the wildlife show, and each 1 percent is expected to bring in donations of $9,000. In contrast, the manufacturing show is expected to be watched by 15 percent of the viewing audience. However, each 1 percent of the viewership will likely generate only $5,000 in donations. If the wildlife show is canceled, it can be sold to network television for $15,000.

What are the relative merits of the two shows regarding the projected revenue to the station?


Projected revenue to the station from Wildlife show	$	donation

Projected revenue to the station from Manufacturing show	$	donation
Manufacturing show (sell wildlife show)		sales proceeds
	$	total revenue

Reference no: EM13567623

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