Revenue allocation, speaking fees. Geoff Carr is a leading public relations expert.

He recently convinced three well-known sports personalities to jointly appear on a one-day seminar.

Linda Young is a leading soccer coach. She gave six speeches last year, each at $11,000 per appearance. Young refuses most invitations, preferring to focus on ways to win matches or to relax at home.

Vince Rock is an Olympic gold medallist. Rock gave 50 speeches last year, each at $4,400 per appearance. He loves publicity and rarely says no to invitations.

Juan Malvido is a television sports commentator. Malvido charged $2,200 for each of the 40 appearances he made last year. His television network actively solicits venues at which Malvido talks.

In the past, each speaker has been the only presenter at events at which they appear. Young, Rock, and Malvido will each speak for 2 hours at Carr’s one-day seminar.

The first seminar draws 500 people at $220 per head. Carr promised his three speakers he would give them in aggregate 30% of the total revenues. Without discussing it with each speaker, Carr assumes this 30% would be split equally—10% oftotal revenues to Young, 10%

to Rock, and 10% to Malvido.

Required 1. Describe two alternative ways (other than equal splitting) to allocate the 30% of total rev¬

enues among the three speakers.

2. Discuss possible reactions of each speaker to Carr’s proposed equal splitting ofthe 30% of revenues allotted for speaking fees.