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Rohr Training Services (RTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients
Rohr Training Services (RTS) 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 RTS incurs is instructor salaries: it pays instructors $5, 600 per course taught. RTS recently agreed to offer a course of instruction to the employees of Basemera Incorporated at a price of $420 per student. Basemera estimated that 20 students would attend the course. Base your answers on the preceding information. Required: Part 1: a. Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost? Fixed cost Variable cost b. Determine the profit, assuming that 20 students attend the course. Profit ___ c-1. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). Profit _____ c-2. What is the percentage change in profitability? (Round your answer to 2 decimal places.) change in probability ____ % d-1. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrolment decreases to 18 students) Profit __ d-2.What is the percentage change in profitability? (Round your answer to 2 decimal places.) change in probability ____ %
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