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Literary Agent

Real-Life Activities

Real-Life Math

Agents are probably best known for their ability to put together a deal. But agents know that good math skills can make or break a situation. And since their earnings depend on their clients' earnings, they have a big stake in every deal.

You are an agent for a hot young writer who is about to choose the publishing house that will publish his next 5 books. All offers are good, but you need to decide which is best in financial terms.

Deal 1. Moonstone Publishing

  • $5.5 million for the first book, $7 million for the second book and $7 million each for the final 3 books
  • Guaranteed $1 million per book for movie rights
  • 10 percent of audio book sales

Deal 2. W and R Entertainment Industries Inc.

  • 5 books at $6 million each
  • 10 percent of all movie productions, 2 guaranteed movies
  • 5 percent of paperback sales

Deal 3. Big Deal Books

  • 5 books at $2.5 million each
  • 5 percent of total paperback sales of each book
  • 5 percent of total overseas publishing fees of each book
  • 15 percent of all movie productions, 2 movies

You also know the following facts:

  • Movie productions are expected to be worth $60 million each
  • Paperback sales have a projected total value of $120 million
  • Overseas publishing fees should be worth $8 million per book
  • Audio book sales are worth $24 million total

Don't forget to calculate your share -- you get 15 percent.