Micromedia is a small computer training company based in South Africa. The company organizes training workshops for local employees who want to improve their skills in word processing, spreadsheets and so on. Micromedia is currently planning a two-day workshop on the use of Microsoft Excel in quantitative business modelling. The company intends to charge a fee per participant of 3000 Rand. The company estimates that it will cost around 48 000 Rand to run the workshop. This cost includes conference room, tutor fees, marketing. In addition the company rents PCs for its workshops from a local IT company at 300 Rand per day per PC.

a. Develop a model for the total cost to put on the seminar. Let x represent the number of participants who enrol in the workshop.

b. Develop a model for the total profit if x participants enrol in the workshop.

c. Micromedia has forecasted an enrolment of 30 participants for the workshop. How much profit will be earned if their forecast is accurate?

d. Calculate the breakeven point.