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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 $ per course taught. RTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $ per student. Novak estimated that students would attend the course.
Base your answers on the preceding information.
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Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost?
Determine the profit, assuming that students attend the course.
Determine the profit, assuming a percent increase in enrollment ie enrollment increases to students What is the percentage change in profitability?
Determine the profit, assuming a percent decrease in enrollment ie enrollment decreases to students What is the percentage change in profitability?
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