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How does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?

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 […]

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How does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?

  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 […]

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How does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?

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 […]

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Are the costs of owning a car fixed, variable, or mixed?

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 […]

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How will installing tablets at all tables affect Applebee’s breakeven point?

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.  […]

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How do costs of a fashion truck compare with the costs of a bricks-and-mortar store?

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 […]

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What is break even for a food vendor at The Ohio State Fair?

The 160th Ohio State Fair in 2013 had an estimated 903,824 visitors during the twelve days of the fair, which was record-breaking attendance.  The high attendance led to a record-breaking profit of about $400,000 for the fair. Among the sources of revenue for The Ohio State Fair are the revenues generated from the food vendors. […]

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How do the added costs to produce BK’s new lower-calorie fries affect the fry breakeven point?

Burger King has launched a new kind of French fries called “Satisfries.” These new fries are made with a batter that is less porous and absorbs less oil than Burger King’s regular fries, resulting in 20 per cent fewer calories in Satisfries than regular fries.  Satisfries contain 340 calories versus 410 calories in regular fries. Consumers […]

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How many aircraft must be in service to break even at Virgin America?

After several years of losses, Virgin America recently announced that it anticipates a profit for 2013. Although the company is expecting a profit for 2013, it still is not out of the woods.  Critics have called for greater cost control at Virgin America. The following table contains selected financial and other data for Virgin America […]

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