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Posted: August 2nd, 2024
hi, just wondering if can get help with the following question?5. Narvel Comics has decided to simplify production of its movies by usinga computer to write scripts. The computer will craft a superhero storyin which the power of a randomly selected animal is given to an ordinary human through an series of increasingly improbable accidents. You are given the following information on the first feature film from the project, âBrigadier Wombatman I: Predictable Origin Story of a Militarized Human- Animal Hybrid Mutantâ:Ticket revenues from the movie are expected to be $176.9 million. While much of this is expected to come from new ticket purchasers, 49% will come from existing Narvel customers that see Brigadier Wombatman instead of another Narvel movie. However, 55% of these existing customers will see D.G. Comicâs new movie âSergeant Echidnaâ (and not a Narvel movie) if Narvel does not produce Brigadier Wombatman.Actor and crew salaries for the movie will total $99.6 million. The movie will star Liam Hemsworth (Chris was too expensive).Inexplicably, Narvelâs existing New York City set will be used to recreate Queensland. This set was built 2 years ago for $32.0 million with a useful life of 10 years. The annual depreciation charge for this set is $3.2 million.Narvel will expand its group of computer programs from 14 to 23 to enable the script writing for the movie. Programmers earn a salary of $0.28 million per year.In an twist no one sees coming, the arch-enemy turns out to be Brigadier Wombatmanâs half-brother Thoki, played by Luke Hemsworth (Chris was still too expensive). Thokiâs backstory will be turned into a se- ries of comic books which are expected to produce revenues of $9.0 million against costs of $2.6 million.Narvel pays taxes at a marginal rate of 30%. If all the events described above occur in this coming fiscal year, what are the incremental earnings for Narvel due to this film?
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