Kim Bassingers Final Analysis Case Study Example | Topics and Well Written Essays - 750 words

Kim Bassingers Final Analysis - Case Study ExampleIt must be state here that the operative word on the $3 million revenue is potential hence the inwardness is the estimated revenue from making the film with Kim Bassinger thus it is relevant to the case. It is relevant because it is an estimate given that Ms. Bassinger had committed to do the project (Barton, Shenkir & Marinas 163). Considering that the $800,000 foreign pre-sales are only presumable, which means in accounting term has a slight than 50 per cent probability of happening, hence in determining whether the maximum and minimum upset reach estimates of briny var. be adjusted this amount is irrelevant. The appearance of Ms. Bassinger in the film will not put up the possibility of having $800,000 in foreign pre-sales more than probable. The realized loss of $2.1 million from producing Boxing capital of Montana without Ms. Bassinger is a relevant cost to the case. This amount is the difference between making the movie w ith Ms. Fern and with Ms. Bassinger. Hence, it should be imply in the maximum and minimum lost gain estimates of Main Line. The given figures for this lost profit estimates should not be adjusted since they realize taken into account the $2.1 million loss.Requirement 2aKim Bassingers Final Analysis wages of $3 million is relevant to the determination of lost profits to Main Line. Although Basinger was to be give $600,000 in guaranteed compensation to appear in Boxing Helena with another $400,000 to be paid out of maker revenues before the bank was paid on the production loan to finance the film (Barton, Shenkir & Marinas 164) it is highly probable that her agent would have negotiated a higher salary for the film. Requirement 2bThe comparison of revenues for Bassinger films with revenues for Fenn films is relevant to the determination of lost profits to Main Line. The comparison is like that of the incremental revenue comparison done in a make or buy conclusion. Option 1 here or we can say the make decision is the film starring Ms. Bassinger, while Option 2 or if you like the buy decision is hiring Ms. Fenn to do it instead.Requirement 3In my opinion, Main Lines expert witness is not correct in attempting to estimate the revenues for Boxing Helena beyond pre-sales amounts. In an enthronization decision, the revenues through out the life of that investment should always be included in determining whether that investment is profitable. In this case, the revenues beyond the pre-sales amounts can be reasonably estimated.Requirement 4Yes, Main Lines lost profits should be adjusted downward to include an estimate of domestic revenues for the Without Basinger film. Hence, only the incremental revenue had Ms. Bassinger appeared in the film should be included in the lost profit estimates. However, the use of the $1.7 million advance made by one of the Main Line partners against domestic revenues as the estimate is not a valid estimate for the domestic revenues f or the Withour Bassinger film. A hefty estimate would be the add up revenue of Fenn films which is $1.6 million.Requirement 5It is not reasonable to assume that Main Lines pretax cash position would have increased by $3 million. Part of this amount would be paid to others such as the partner who advances $1.7 million. Moreover, it can be that several of the expenses incurred by the film production have been taken up as liabilities hence the initial take up from the film will be used to pay up some of these liabilities.Requirement 6I disagree with the jurys lost profit assessment of $7,421,694. My own assessment based on what is relevant and irrelevant cost figures to the case is $3,000,000 which is the average of the minimum and maximum lost profit figures as presented in