Adams Training Services $($ATS$)$ provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients$$ offices on the clients$$ equipment. The only major expense ATS incurs is instructor salaries; it pays instructors $$5,500$ per course taught. ATS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $$460$ per student. Novak estimated that $20$ students would attend the course.

Base your answers on the preceding information.

The instructor has offered to teach the course for a percentage of tuition fees. Specifically, the instructor wants $$230$ per person attending the class. Assume that the tuition fee remains at $$460$ per student.

Is the cost of instruction a fixed or a variable cost?

Determine the profit, assuming that $20$ students take the course.

Determine the profit, assuming a $10$ percent increase in enrollment $($i$.$e$.,$ enrollment increases to $22$ students$).$ What is the percentage change in profitability?

Determine the profit, assuming a $10$ percent decrease in enrollment $($i$.$e$.,$ enrollment decreases to $18$ students$).$ What is the percentage change in profitability?