curious to see how some operators handle these things.

when it comes to prize machines like crane games, if the product you just put in the machine cost $50, when you do money collections, doesn't the $50 come right off the top and go to who ever paid for the prizes (assuming the op)? then, the remaining funds are split between operator and location via their agreed split percentage?

what about these:

1) prize game is at location and has been there. game breaks down and is out of order.
a motor breaks that costs $120. is that $120 considered product cost? does that $120 come off the top from collections before the split?

2) same question for pinball. flipper rubber breaks in half, or board or coil burns up..is that a "product" cost? or does the game owner just eat the cost and the location owner gets their split as if nothing happened?

3) you have a gun shooter game at a location and someone physically throws the gun against the ground and breaks it. things may happen often like this and the employees there don't keep an eye on games enough or stop people from acting like idiots. you have to buy a new gun. does that come off the top as product cost?

curious to see peoples answers, especially OPS answers.