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Required information

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Baird Training Services $($BTS$)$ 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 BTS incurs is instructor salaries; it pays instructors $$5,200$ per course taught. BTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $$440$ per student. Novak estimated that $20$ students would attend the course.

Base your answers on the preceding information.

Required

a$.$ Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost?

b$.$ Determine the profit, assuming that $20$ students attend the course.

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

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