Tracia B is an internationally known professor specializing in consumer marketing is being contracted for 2018 marketing executives. Each executive would pay $1,000 to attend. The fixed costs for conducting the seminar excluding the costs to be paid to Tracia B are as follows:

Advertising	$10,000
Mailing of brochures	5,000
Administrative costs at Training Institute of Barbados	4,800
Rental of lecture theatre	1,500

The variable cost per participant attending the seminar would be as follows

Meals and drinks	$150
Binders and photocopying	140

The Dean of the Training Institute of Barbados offered Tracia B a compensation package of a business class airfare and accommodation of $7,200 plus a lecture fee of $5,000. Tracia B has proposed an alternative compensation package in which she would be responsible for her airfare and accommodation but would receive a flat fee of $4,000 plus 50% of the profits from the seminar.

Required:

Calculate the break-even point under both alternatives

1. Tracia B accepts the regular compensation of airfare and accommodation of $3,600 and lecture fee of $2,400

2. Tracia B accepts the alternative of $2,000 plus 50% of the profits