Required information

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Campbell Training Services $($CTS$)$ 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 CTS incurs is instructor

salaries; it pays instructors $$5,400$ per course taught. CTS recently agreed to offer a course of instruction to the

employees of Novak Incorporated at a price of $$450$ 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, she wants $$200$ per person attending the

class. Assume that the tuition fee remains at $$450$ 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?