Sports Illustrated announced in late January 2015 that it would be laying off all six of its staff photographers. Instead, it will be using freelance photographers around the world. Sports Illustrated is one of 90 magazines owned by Time Inc. (TIME). Published 56 times a year, Sports Illustrated is read by over 23 million people […]
Continue reading
Archive | Ch 06 Cost behavior RSS feed for this section
How would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 
0 Comments
Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board. It may be operated via remote control, […]
Continue readingWhat impact do lower fuel costs and other changes have on American Airline’s break even point?
January 7, 2015 0 Comments
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 does the change in selling price impact the break even point for Amazon’s Fire Phone?
November 18, 2014 0 Comments
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 readingHow does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?
November 12, 2014 0 Comments
Lowe’s, a U.S.-based chain of retail home improvement stores, is introducing a robotic shopping assistant into its Orchard Supply Hardware store in San Jose, California. The robot, called OSHbot, will greet customers and assist customers in finding products. In addition, the robot has one large screen on the front and one on the back. The […]
Continue readingHow does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?
July 18, 2014 0 Comments
AMC Entertainment Holdings Inc. is spending millions of dollars to install recliner-seating in its theaters. AMC Entertainment Holdings Inc. is outfitting about 1,800 of its nearly 3,000 auditoriums with recliners for a total cost of about $600 million. The recliners will remove up to two-thirds of the seating capacity in each theater, due to […]
Continue readingHow does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?
June 18, 2014 0 Comments
Change is rapidly occurring in the restaurant industry due to a combination of higher labor costs, increased technological capabilities, and other factors. Protesters across the world are calling for fast food restaurants to raise their wages, arguing that the current wages paid to workers are not enough to survive on. Various states and cities have […]
Continue readingAre the costs of owning a car fixed, variable, or mixed?
May 29, 2014 0 Comments
According to a recent news article in the Wall Street Journal (“Mercedes or Ford, It Costs a Lot More Than You Think,” Wall Street Journal, Sunday Journal, March 15, 2014), the average consumer spends more than $760 a month on his/her vehicle and related expenses. Purchase price of the car Finance charges on […]
Continue readingHow will installing tablets at all tables affect Applebee’s breakeven point?
April 15, 2014 1 Comment
At Applebee’s, Presto tablets by E la Carte are being installed at every table. In total, Applebee’s will be purchasing 100,000 tablets. Customers will be able to pay their food bill and order appetizers and desserts using the tablets. The tablets are not replacing wait staff; wait staff will still take the orders for entrees. […]
Continue readingHow do costs of a fashion truck compare with the costs of a bricks-and-mortar store?
February 27, 2014 0 Comments
Fashion trucks are starting to pop up across the country. These fashion trucks are fashion boutiques on wheels. The owners of the fashion trucks drive them from locale to locale, seeking to bring clothing and accessories to urban dwellers who value the convenience of a mobile store front. Emily Duran operates the light pink Passionista […]
Continue reading