Panther Productions Ltd. You have been retained as a finance consultant to advise Panther Production's management team about potential profitability scenarios. The production manager provided you with the following background of the most recent production. Panther Productions Limited has just finished production of the most recent sequel in its Illinois Jones series. The film cost $22 million to produce. Most production personnel and actors were paid a fixed salary (included in the $22 million); however, the two major stars of the film, Chevy Harrison and Sean Connelly, as well as the director and producer, Stephen Lucas and George Spielberg, all received equity interest in the film. In addition, the distributor of the film, Perrymount Productions, receive royalties in exchange for its investment of $6.5 million to promote the film. The actors each receive 4% of revenues, the director and producer each receive 8% of revenues, and Perrymount receives 12% of the revenues. Panther receives 65% of the total box office receipts, and out of this amount it pays the royalties to the actors, director, producer, and promoter. At this point, management has the following questions

Assume the sequel achieves $280 million in box office revenues. What is the operating income to Panther under each of the contracts? Comment on the results. Be specific.