BBT Production is promoting a concert in Kuala Lumpur. The bands will receive a flat fee of RM7 million in cash. The concert will be shown worldwide on closed-circuit television. BBT will collect 100% of the receipts and will return 30% to the individual local closed-circuit theater managers. BBT expects to sell 1.1 million seats at a net average price of RM13 each.

Required:

a)	The general manager of BBT Production is trying to decide what amount to spend for advertising. What is the most BBT could spend and still break even on overall operations, assuming sales of 1.1 million tickets?
b)	If BBT desires an operating income of rm500,000, how many seats would have to sell? Assume the average price is RM13 and total fixed cost (advertising above)