• Netflix, Inc. is analyzing the costs associated with producing its original content. For a new series, the company incurred the following costs:
  • Production Budget: $10,000,000
  • Cast Salaries: $2,000,000
  • Crew Salaries: $1,000,000
  • Marketing Expenses: $3,000,000
  • Licensing Fees: $500,000 Calculate the total production cost for the series and determine the break-even point in terms of the number of subscribers needed to cover the production costs if the monthly subscription fee is $15.