Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rooney Training Services (RTS) 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 transcribedimage text in transcribed

Rooney 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 $5,100 per course taught. RTS 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. Problem 11-25A (Algo) Part 1 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the profit, assuming that 20 students attend the course. Profit < Required A Required C >

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

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th edition

130565353X, 978-1305887510, 1305887514, 978-1305653535

More Books

Students also viewed these Accounting questions

Question

What is the offer in terms of Spa@work?

Answered: 1 week ago

Question

How is power distributed, and what share of it can I have?

Answered: 1 week ago