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chapter 11 states that a $74 million film must earn around $111 million before earning a profit. what is the primary reason for this?\

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The high cost of marketing and distribution is the reason that a $74 million film must earn around $111 million before earning a profit.

Typically, advertising, promotion, and public relations budget include marketing expenses. Each sum varies according to the size of the company, its yearly sales, and how much the rivals advertise. Marketing budgets can range from less than 1% of sales to more than 30%, depending on the industry.

Costs incurred to deliver your product from the production unit to the final customer are referred to as distribution costs (also known as distribution expenses).

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