In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New York Fashion Week were listed. These cost estimates are listed below: Rent $0 to $100,000 Hair and makeup: $0 to $100,000 Stylist: $5,000 to $20,000 Public relations: $10,000 to $20,000 Models: $0 to $200,000 […]
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How much does it cost to make a soda with a SodaStream system?
September 25, 2013 
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SodaStream is a system that consumers can use to make their own soda and seltzer water. The SodaStream machine allows the consumer to carbonate water combined with flavored syrup (“SodaMix”) to make soda in a variety of flavors. Consumers can also carbonate plain water to make seltzer water. SodaStream has been experiencing strong sales growth […]
Continue readingWhat are potential cost drivers for an ABC system at Virgin America?
September 20, 2013 0 Comments
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 […]
Continue readingHow does Washington Township analyze its potential equipment purchases?
September 5, 2013 0 Comments
Washington Township in Franklin County, Pennsylvania, operates a Transfer Station and Recycle Center that individuals and businesses can use to recycle a variety of items, including electronics, bottles, and cardboard. At the township’s Transfer Station and Recycle Center, a baler is used to compress and bale certain recyclable items for transport. Typically, balers might produce […]
Continue readingHow many aircraft must be in service to break even at Virgin America?
September 4, 2013 0 Comments
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 […]
Continue readingWhy did Hawaiian Airlines make the decision to offer iPad Minis for in-flight rental?
September 1, 2013 0 Comments
In 2013, Hawaiian Airlines made the decision to add 1,500 iPad Minis to its older Boeing 767 widebody jets to make them available for passengers to rent during flights. Prior to the iPad Minis, these aircraft had dated portable “digEplayers” for its passengers to rent. Presumably, these dated devices have become less attractive to today’s […]
Continue readingWhat types of costs are incurred when manufacturing marshmallow cookies?
August 17, 2013 4 Comments
This posting is about an activity you can use to discuss the various types of manufacturing costs. The cost object is a box of marshmallow cookies. The first step is to show (or ask students to watch) this 4:38 minute “How It’s Made” video about marshmallow cookies. Questions 1) What are the direct materials of the […]
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