Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solomon Training Services (STS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients'

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Solomon Training Services (STS) 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 STS incurs is instructor salaries; it pays instructors $5,600 per course taught. STS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $420 per student. Novak estimated that 20 students would attend the course. students would attend the Base your answers on the preceding information Base van Required a. Relative to the number of students in a single course, is the cost of instruction a cost? b. Determine the profit, assuming that 20 students attend the course. c. Determine the profit, assuming a 10 percent increase in enrollment (le, enrollment increases to 22 students). What is the percentage change in profitability? d. Determine the profit, assuming a 10 percent decrease in enrollment (l.e., enrollment decreases to 18 students). What is the percentage change in profitability? Relative to the number of students in a single course, is the cost of instruc The cost of instruction is a Determine the profit, assuming that 20 students attend the course. Profit Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability? (Round your percentage answer to 2 decimal places. Negative amount should be indicated with a minus sign.) Profit Change in profitability References Required A Required b Require Determine the profit, assuming a 10 percent decrease in enrollmente, enrollment decreases to 18 students). What is the percentage change in profitability? (Round your percentage answer to 2 decimal places. Negative amount should be indicated with a minus sign.) 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_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

Accountability Ethics And Sustainability Of Organizations

Authors: Sandro Brunelli, Emiliano Di Carlo

3rd Edition

3030311929, 9783030311926

More Books

Students also viewed these Accounting questions