Question
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
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 $5,800 per course taught. TST recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $470 per student. Novak estimated that 20 students would attend the course.
Base your answers on the preceding information.
TST sells a custom wood plaque to students who complete the training course. Due to the custom nature of these plaques, TST has to produce them in advance based on the estimated number of students to be enrolled in the course. Any plaques made for students who do not end up completing the course will be discarded. Prior to the first class, TST pre-ordered 20 plaques based on the client's estimate of the number of people who would attend the course. TST will only have 20 plaques to offer students regardless of whether enrollment is below or above expectations due to them having to be made in advance of the course. Each plaque costs $26 and is sold to students who complete the course for $44.00.
Calculate the cost of plaques in total and per unit, assuming that 17, 20, or 22 students complete the course.
Classify the total cost of plaques as fixed or variable relative to the number of students attending the course.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started