Flop Formula - Assessment

What is the flop formula?

How much does a film need to make at the box office to be considered a flop (less than?)
How essential is budget and Film financing to the success of a Blockbuster?

Where does this money come from?

Why are Hollywood film adverse to taking risks - why Blockbuster formulaic films and what is the effect on the experience for audience?
Why could & should they take risks using the 'Flop Formula'?
Conclusion: What is the Mainstream Film Industry's purpose, why does it exist? How is this different to Independent and Foreign Cinema - what purpose?