Required Information[The following information applies to the questions displayed below.]Benson Training Services (BTS) provides instruction on the use of computer software for the employees of its corporateclients. It offers courses in the clients' offices on the clients' equipment. The only major expense BTS Incurs Is Instructorsalaries; it pays Instructors $5,700 per course taught. BTS recently agreed to offer a course of instruction to theemployees of Novak Incorporated at a price of $410 per student. Novak estimated that 20 students would attend thecourse.Base your answers on the preceding Information.Requireda. 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 thepercentage change in profitability?d. Determine the profit, assuming a 10 percent decrease in enrollment (1.e., enrollment decreases to 18 students). What is thepercentage change in profitability?Complete this question by entering your answers in the tabs below.Required ARequired B Required CDetermine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is thepercentage change in profitability?Note: Round your percentage answer to 2 decimal places. Negative amount should be indicated with a minus sign.ProfitChange in profitability$1,680Required D96< Required CRequired D >

INTRODUCTIONFixed expenses are those expenses that do not vary with the level of production on a…

Required Information The following information applies to the questions displayed below.] Benson Training Services (BTS) provides instruction on the use of computer software for the employees of its corporate llents. It offers courses in the clients' offices on the clients' equipment. The only major expense BTS Incurs is Instructor alaries; it pays Instructors $5,700 per course taught. BTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $410 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding Information.

Required Information The following information applies to the questions displayed below.] Benson Training Services (BTS) provides instruction on the use of computer software for the employees of its corporate llents. It offers courses in the clients' offices on the clients' equipment. The only major expense BTS Incurs is Instructor alaries; it pays Instructors $5,700 per course taught. BTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $410 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding Information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company’s many outlets: Per Pair of Shoes Selling price $ 25.00 Variable expenses: Invoice cost $ 11.50 Sales commission 3.50 Total variable expenses $ 15.00 Annual Fixed expenses: Advertising $ 32,000 Rent 17,000 Salaries 110,000 Total fixed expenses $ 159,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $35,400 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
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