Archive | Ch 07 CVP RSS feed for this section

How does shifting the sales mix at Ford Motor Company to more F-150 trucks affect Ford’s break even sales volume?

Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States as compared to the prior month. Sales of Ford’s F-series trucks and the Explorer, Expedition, and Navigator SUV models drove the sales growth. According to a Bloomberg article (link) earlier this year, the F-150 Series product line is Ford’s most […]

Continue reading

What impact do higher fuel costs and other changes have on American Airline’s break even point?

American Airlines Group (AAL), the world’s biggest airline, posted a loss in the first quarter of 2022, but expects to return to profitability as early as the second quarter of 2022. Despite the large profit, airlines have been experiencing a large increase in the cost of oil. The price of oil has risen during 2022; […]

Continue reading

What costs are relevant when determining how many pizzas a month Stellar Pizza must sell to break even?

Stellar Pizza has a pizza-making robotic machine that was built by three former SpaceX engineers. More than 23 former SpaceX employees work at Stellar Pizza. The pizza-making robot can produce a pizza every 45 seconds. A pizza can be customized, baked, and topped in less than five minutes by the robotic machine. Stellar Pizza will […]

Continue reading

How would a nail-painting robot impact a hotel spa’s cost behavior and operating leverage?

Clockwork, a startup in San Francisco, has built a robot that paints nails in under ten minutes. This video shows the nail painting robot in action. The robot has a 3D camera with which it takes pictures of each nail to build a 3D map of the nail. Then the robot’s artificial intelligence system uses […]

Continue reading

New! Constructing an Interactive Excel Dashboard project for introductory managerial accounting available

Note from Wendy: This case is the fourth of the four interactive Excel dashboard cases I created around the Jubilee Superstores data set – so if you have been following this blog, you have already seen the prebuilt dashboard in financial accounting project, the constructing a dashboard project for financial accounting, and the prebuilt dashboard […]

Continue reading

New! Prebuilt Interactive Excel Dashboard project for introductory managerial accounting available

This new case has students use a prebuilt interactive Excel dashboard to analyze a company’s product contribution margins and segment margins. This dashboard is ready for students to use; students will view a tutorial video about the case, read the instructions, and use the Excel dashboard to answer the case questions. The case will take, […]

Continue reading

How will the change in Chipotle’s sales mix due to the pandemic impact Chipotle’s profits?

Digital sales for Chipotle Mexican Grill Inc. (NYSE: CMG) grew 216.3% in the second quarter of 2020, accounting for 60.7% of sales for the quarter, as the effect of the pandemic for the entire quarter sent customers to online options rather than dining in. Many digital customers opted for delivery, viewing it as a safer […]

Continue reading

What types of costs are associated with a Stance™ sock vending machine located in an airport?

At Cleveland Hopkins International Airport in northeastern Ohio, a vending machine that dispenses socks was recently installed. Located in the C concourse, the Stance sock vending machine offers a variety of what Stance refers to as “uncommon” socks. The designs on the socks in the Cleveland airport vending machine include Cleveland Browns, Cleveland Indians, patriotic […]

Continue reading

New data analytics case for introductory managerial accounting available – KAT Insurance!

In addition to the data analytics case we posted last week for introductory financial accounting, we have also developed a case, using the same KAT Insurance Company data set, for introductory managerial accounting. The three of us who teach introductory accounting (Wendy Tietz, Jennifer Cainas, and Tracie Miller-Nobles) developed a KAT Insurance case to introduce […]

Continue reading

How will Walmart’s use of robots change its break even point?

Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other […]

Continue reading