Franklin Training Services (FTS) provides instruction on the useof computer software for the employe

Franklin Training Services (FTS) provides instruction on the useof computer software for the employees of its corporate clients. Itoffers courses in the clients’ offices on the clients’ equipment.The only major expense FTS incurs is instructor salaries; it paysinstructors $6,000 per course taught. FTS recently agreed to offera course of instruction to the employees of Novak Incorporated at aprice of $700 per student. Novak estimated that 20 students wouldattend the course. a. Relative to the number of students in a single course, is thecost of instruction a fixed or a variable cost? b. Determine the profit, assuming that 20 students attend thecourse. c. Determine the profit, assuming a 10 percent increase inenrollment (i.e., enrollment increases to 22 students). What is thepercentage change in profitability? d. Determine the profit, assuming a 10 percent decrease inenrollment (i.e., enrollment decreases to 18 students). What is thepercentage change in profitability? e. Explain why a 10 percent shift in enrollment produces morethan a 10 percent shift in profitability. Use the term thatidentifies this phenomenon. . . .