Interpreting the equity method footnote In its March 31, 2017, SEC Form 10-K, Lions Gate Entertainment Corp. (Lionsgate) reports unconsolidated equity method investments at $322.9 million on its balance sheet and $10.7 million on its statement of income. Additionally, the company presents the following material information about its unconsolidated equity method investments in the footnotes of its March 31, 2017 10-K:

a. What is the total dollar amount of net income recognized by EPIX during the year ended March 31, 2017 that does not include intercompany transactions with Lionsgate? 

b. Which has a higher variance: the eliminations of profits on licensing sales or the subsequent realization of gross profits on licensing sales? Please explain why these items have a different pattern of affecting the Equity Investment income.

EPIX. In April 2008, the Company formed a joint venture with Viacom, its Paramount Pictures unit and Metro-Goldwyn-Mayer Studios to create a premium television channel and subscription video-on- demand service named "EPIX." The Company invested $80.4 million through September 30, 2010, and no additional amounts have been funded since. The following table presents the summarized statements of income for the twelve months ended March 31, 2017, 2016 and 2015 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Twelve Months Ended March 31, (Amounts in millions) 2017 2016 2015 Revenues.. $400.1 $413.8 $442.8 Expenses: Operating expenses Selling, general and administrative expenses. 259.8 221.6 252.9 23.3 24.0 23.3 Operating income.. Interest and other expense. 117.0 (0.3) 168.2 166.6 (2.2) (2.0) Net income $116.7 $166.0 $164.6