How much in royalties does a script writer get for a movie project, which costs $30 million to produce?

1. The producers pay to the script writer an initial fee of $25,000 when the script is received.

2. The script writer receives 3 percent of the box office gross receipts in excess of the cost of production.

Correct answer marked below

Statement (1) ALONE is sufficient

Statement (2) ALONE is sufficient

BOTH statements TOGETHER are sufficient

EACH statement ALONE is sufficient

Statements (1) and (2) TOGETHER are NOT sufficient

Correct

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What this question tests

Your fluency with the order of operations, fractions, decimals, and basic number sense — the foundation every quant question leans on.

Applying the order of operations out of sequence or rounding intermediate values before the final step.