PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ candies are produced in a factory in Connecticut. The Connecticut location also houses PEZ’s US headquarters and a PEZ Visitors Center. PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients […]
Continue readingShould the City of Ravenna outsource its income tax department?
The City of Ravenna in Ohio has an income tax on its residents of 2%. For many years, the City had its own income tax department with two employees who processed all of the tax returns from residents. The annual cost of that income tax department was most recently estimated to be $173,000 (“Ravenna will […]
Continue readingWhich costs will be capitalized by United related to its 23,000 iPhone 6 Plus handsets for flight attendants?
In 2015, United Continental Holdings, Inc., (UAL), will be purchasing 23,000 iPhone 6 Plus handsets for its flight attendants to use in-flight for retail transactions. The phones will also be used for email, United’s internal network, and various policies and procedures manuals. Beyond the cost of the iPhone 6 Plus handsets, United will have to […]
Continue readingWhat impact do lower fuel costs and other changes have on American Airline’s break even point?
American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters. United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]
Continue readingHow should the French grocer, Intermarché, set prices for ugly produce?
At least one third of fresh produce is discarded, according to estimates from the United Nations Environment Programme (see “Students from France, Mexico and United Kingdom Recognized for Taking up Fight against Food Waste,” United Nations Environment Programme, December 16, 2014, http://www.unep.org/newscentre/Default.aspx?DocumentID=2814&ArticleID=11110&l=en .) Some of the produce is discarded because it is less than perfect […]
Continue readingWhat happens to the balance sheet of Trump Taj Mahal if billionaire investor exchanges debt for equity?
An Atlantic City casino, the Trump Taj Mahal, has been struggling financially in recent years like many other casinos in the city. In 2014, four of Atlantic City’s casinos closed their doors, including the Revel, Showboat, Trump Plaza, and the Atlantic Club. Billionaire investor Carl Icahn holds $286 million of the Trump Taj Mahal’s debt. […]
Continue readingHow did Apple’s 7-for-1 stock split affect its total stockholders’ equity?
In June 2014, Apple, Inc. (AAPL) did a 7-for-1 stock split, meaning that an investor who previously held one share of Apple stock would have seven shares on the date of the split. Before the split, Apple had 861 million shares of stock valued at roughly $650 each. After the split, Apple had approximately 6 […]
Continue readingHow does the change in selling price impact the break even point for Amazon’s Fire Phone?
In July of 2014, Amazon came out with a smartphone, the Amazon Fire phone. The phone sports 3-D visuals and is tightly integrated into the Amazon ecosystem. For example, the Firefly feature can scan and recognize over 70 million products that the consumer is able to purchase or look up immediately from his or her […]
Continue reading

January 20, 2015 