Netflix is evaluating the costs associated with producing original content. Fixed production costs for a new series are $80 million, with variable costs per episode at $5 million. Netflix plans to produce 10 episodes in the first season, with projected annual revenue of $200 million.

Requirements:

• Calculate the total fixed and variable production costs for the new series.
• Determine the cost per episode and the total production cost for the season.
• Analyze the return on investment (ROI) for the original content.
• Discuss the strategic importance of original content in Netflix's growth strategy.
• Evaluate the impact of content production costs on Netflix's financial statements.
• Recommend content acquisition and production strategies to enhance profitability.