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2. Heroes - Cost-Volume-Profit (CVP) analysis Film4 has just finished production of Heroes, the latest action film directed by Domingo Cesaro and starring Arnaldo Moura

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2. Heroes - Cost-Volume-Profit (CVP) analysis Film4 has just finished production of Heroes, the latest action film directed by Domingo Cesaro and starring Arnaldo Moura and Victoria Rebello. The total production cost to Film4 was 24 million. This included all the production personnel and actors on Heroes. Soho Distributions will handle the marketing of Heroes and will be paid 15% of the revenues Film4 itself receives from the box-office receipts. Film4 receives 55% of the total box-office receipts (out of which comes the 15% payment to Soho Distributions). (a) What is the breakeven point to Film4 for Heroes expressed in terms of: (i) revenues received by Film4, and (ii) total box-office receipts? (b) Assume in its first year of release, the box-office receipts for Heroes total $500 million. What is the operating income to Film4 from the movie in its first year

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