Meanwhile, producer Joe Pasternak, who had been successfully producing light musicals with young sopranos for Universal's German subsidiary, repeated his formula in America. Teenage singer Deanna Durbin starred in Pasternak's first American film, Three Smart Girls (1936). The film was a box-office hit and reputedly restored the studio's solvency. The success of the film led Universal to offer her a contract, which for the first five years of her career produced her most successful pictures.

Who produced the film Three Smart Girls?