Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fanning Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Fanning Training Services (FTS) 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 FTS incurs is instructor salaries; it pays instructors $5,500 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $410 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding information. Problem 2-21A (Algo) Part 2 The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $230 per person attending the class. Assume that the tuition fee remains at $410 per student. f. Is the cost of instruction a fixed or a variable cost? g. Determine the profit, assuming that 20 students take the course. h. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability? i. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability? Complete this question by entering your answers in the tabs below. Required F Required G Required H Required I Is the cost of instruction a fixed or a variable cost? The cost of instruction is a Required F Required G >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

4th edition

1259066525, 978-1259066528

More Books

Students also viewed these Accounting questions

Question

please dont use chat gpt AI 7 4 0 . .

Answered: 1 week ago