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What is the NPV of Applebee’s investment in tableside tablets for its restaurants?

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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Should the original cost of the leftover 10 million pounds of Mighty Wings matter to McDonald’s decision makers?

In the first half of 2013, McDonald’s bought and stockpiled about 50 million frozen chicken wings for a promotion it was planning for fall 2013. In the fall 2013, McDonald’s debuted Mighty Wings, a menu item that would be available only through the end of November 2013. When Mighty Wings came out, McDonald’s did not […]

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Should the town of Allentown, PA, outsource its pension check-writing?

For years, the City of Allentown, PA, has had its payroll clerk write the pension checks to its retirees every two weeks. The pension check-writing system is based in an older accounting system that was installed in 1983.  The only person who has been trained to use the older accounting system to write the pension […]

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How should Amazon Web Services price its services to Zappos?

Amazon.com has some of the biggest data centers in the world, where it runs cloud-based hosting services.  Amazon Web Services, Inc. (AWS), is the division of Amazon.com that provides compute, storage, and database services to a wide variety of companies, including GE, Netflix, Pfizer, Pinterest, and others. Amazon’s divisions also use its cloud-based hosting services. […]

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Should you rent a cable modem from Time Warner Cable or buy one?

When you have internet service from Time Warner Cable, you will need a cable modem.  Time Warner will rent you a modem for $5.99 per month.  Alternatively, you could purchase your own cable modem.  For example, you could purchase the Motorola Surfboard SB6121 cable modem from Amazon for $79.99. Questions What is the payback period […]

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Should Apple Country Orchards sell Granny Smith apples or make cider from those apples?

Apple Country Orchards in Idalou, Texas, has 6,000 apple trees and offers 30 varieties of apples.  The orchard is 29 years old and allows customers to pick their own apples or to purchase pre-picked apples. In addition to apples and apple picking, the orchard offers hayrides, lunch, pumpkins, and a variety of other items. Apple […]

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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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What are the costs and ethics involved in a recall of surge protectors?

In October 2013, Schneider Electric recalled 15 million of its SurgeArrest surge protectors.  The models recalled were the series APC 7 and APC 8 (manufactured before 2003.) The company warned at that time that the surge protectors could overheat, smoke, and start a fire.  These surge protectors were manufactured before 2003; between the date of […]

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How will the increasing cost of chocolate impact Hershey’s variances?

The price of chocolate had been predicted to increase rapidly beginning in late 2013 and continue into 2014, according to the Wall Street Journal.  The price increase is due to multiple factors, including a shortage of cocoa beans and an increase in demand by consumers. Although the demand for all chocolate has been increasing, consumer […]

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