Problem $11-25$A $($Algo$)$ Effects of operating leverage on profitability LO $11-2$

$[$The following information applies to the questions displayed below.$]$

Zachary Training Services $($ZTS$)$ 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 ZTS incurs is instructor salaries; it pays instructors $$5,600$ per course taught. ZTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $$450$ per student. Novak estimated that $20$ students would attend the course.

Base your answers on the preceding information.

Problem $11-25$A $($Algo$)$ Part $2$

The instructor has offered to teach the course for a percentage of tuition fees. Specifically, the instructor wants $$210$ per person. attending the class. Assume that the tuition fee remains at $$450$ per student.

f$.$ Is the cost of instruction a fixed or a variable cost?

g$.$ Determine the profit, assuming that $20$ students take the course.

h$.$ Determine the profit, assuming a $10$ percent increase in enrollment $($i$.$e$.,$ enrollment increases to $22$ students$).$ What is the percentage change in profitability?

i$.$ Determine the profit, assuming a $10$ percent decrease in enrollment $($i$.$e$.,$ enrollment decreases to $18$ students$).$ What is the perc$$ntage change in profitability?