How can a film studio go bust over a box office bomb, don't they plan for movies doing terrible?

Question

I would think that before they invest millions, they take into account that a movie might flop.

Answer 1

well, no one wants to admit that something they're putting their all into might not work.

plus, the success of movies seems so random these days anyway, so it would be hard for the filmmakers to even predict how it will go over.

i mean christ, napoleon dynamite was a hit! now, honestly who would have ever predicted that would've made any money? haha.

the movie industry is just to random to know if something will flop or just flourish.