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Were batman managers taking a substantial risk

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Question - A book is to be written by Britney Spears. Batman Books agrees to pay Britney $6 million for the rights to this not- yet- written memoir. According to one leading publisher, Batman Books could earn a profit of roughly $1.2 million if it sold 625,000 copies in hardcover. On the other hand, if it sold 375,000 copies, managers would lose about $1.3 million. Publishing executives stated that it was hard to sell more than 500,000 copies of a nonfiction hardcover book, and very exceptional to sell 1 million copies. Were Batman managers taking a substantial risk in publishing this book?

Reference no: EM132681165

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