Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Thornton Training Services (TST) provides instruction on the use of computer software for

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

Required information [The following information applies to the questions displayed below.] Thornton Training Services (TST) 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 TST Incurs is instructor salaries; it pays instructors $5,700 per course taught. TST 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, she wants $240 per person attending the class. Assume that the tuition fee remains at $460 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 (ie, enrollment increases to 22 students). What is the percentage change in profitability?

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

Step: 3

blur-text-image

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

International Accounting

Authors: Timothy Doupnik, Hector Perera

4th edition

77862201, 978-0077760298, 77760298, 978-0077862206

More Books

Students also viewed these Accounting questions