Janice Colangelo Breakeven workshops variable vs fixed costs

Janice Colangelo heads the Training Centre of the large HR Consulting firm EMT Consulting. The firm has three major departments: Recruitment, Training and Career Services.

The Training Centre provides management training for employees of various businesses. Recruitment provides recruitment services and Career Services assists personnel with resumes and offers advice on career planning.
The Training Centre employs 2 administrative assistants, 1 training officer and Janice, the manager on a permanent basis. Part-time trainers are hired on an as-needed basis. Part-time trainers are paid $1500 per workshop.

During 2008 the Training Centre conduction 200 workshops with 20 individuals in each. The charge per individual was $300. This is the maximum number of workshops that can be held in a year.

Following are the results for 2008.

Training Revenue (200 x 20 x $300) $1,200,000
Less Expenses:
Trainer costs (200 x 2 x $1500) 600,000
Manager's Salary 120,000
Training officer 90,000
Administrative staff 80,000
Utilities/phone costs 20,000
Manuals for participants 120,000
Advertising costs 125,000
Postage & other miscellaneous costs 9,450
Total expenses $ 1,164,450

Income from operations $35,550
Common Allocated costs (10% of revenue) 120,000
Net Income or (loss) $(84,450)

Required:

1. a. Classify each of the costs as variable or fixed. Can you please help me to classify VC or FC?

2. Given the allocated costs at 10% of revenue, calculate the number of workshops that must be offered to break-even.

Can you please help me to the right formula for Question 2, I do not understand how to figure it out.