could someone explain the math behind this question

thank you

3. Phi Kappa is planning to hold a seminar for students at the University Centre. It has two options: OPTION 1: Fixed rental cost of $1,000 and $12 per person for books OPTION 2: Fixed rental cost of $3,000 and $8 per person for books or Tickets will be $5 per student. Other items will be donated by recruiters wishing to network with students. Which option will cause the biggest loss if very few students attend? a. Option 1 b. Option 2 c. Both options provide the same amount of risk. d. Neither option has risks. e. None of the above