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Assume that, because of Blockbusters delay in accepting the new contract offer, Goodlookings agent decides that his client should also receive a percentage of the
Assume that, because of Blockbusters delay in accepting the new contract offer, Goodlookings agent decides that his client should also receive a percentage of the revenues Blockbusters will derive from the sale of screening rights in foreign countries, revenues which typically amount to 20% of domestic theater receipts. If the agent proposes a 5% cut of those revenues for Goodlooking, what is the break-even point for Blockbusters Incorporated?
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