Indeed an important lesson.  In touring “Dov’è un bagno pubblico?” is a useful phrase as I have found  shops and bars in tourist areas discourage use of the bagno unless you buy something.

Is “là” acceptable in place of  “in fondo” as in the statement “Il bagno è là a destra.” ?  On a train “in fondo” as at the end of a carriage seems appropriate but is “in fondo” used in other locations?

The audio seems to be missing for the expansion and listening exercise.

in fondo is a "locuzione avverbale di luogo", so basically it's an adverb and it means "at the bottom"
, "at the end". Now it can be use horizontally (distance) and vertically (depth), so to speak.

examples:

- in fondo al mare (at the bottom of the sea), giù in fondo (deep down)

- in fondo al treno (at the rear of the train), in fondo alla strada (at the end of the street)
 

and yes, some places might ask you to buy something, but since public toilets may also charge something (I remember the toilets at the train station in Verona charges something like 50 cents or even 1 euro!!!thieves! don't go there!) you might want to buy a coffee for 80 cents and use the toilet! 

We pronounce it V like Venezia and C like Ciao.

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