Tag Archives: break even

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

Zume Pizza uses a combination of robots, artificial intelligence (AI), and GPS in its food trucks to deliver pizzas to customers’ houses just as the pizza is finished baking. Pizzas are actually prepared and baked in the Zume pizza truck by an employee assisted by robots.  Zume Pizza started operations in April 2016 and is currently […]

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How many Classic Moana™ dolls must Disney sell to cover its costs of developing the sustainable packaging for the doll?

Walt Disney’s new movie, Moana™, opened in theaters across the United States in late November 2016.  The movie is about an island teenager, Moana™, who sets out on an action-packed voyage to save her people. Disney has released a doll modeled after the heroine of the movie, its Classic Moana™ doll.  The doll is 11” […]

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What managerial accounting tools could be used by Giant Eagle to evaluate whether it should put refrigerator doors in its dairy section?

Giant Eagle is a grocery store chain with stores located in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia. Recently, it installed refrigerator doors on the dairy section in many of its stores. Previously, the dairy section was refrigerated but had no doors. The refrigerator doors will reportedly use 78% less energy than the amount of […]

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How would replacing a tattoo artist with a robot change the cost structure at a tattoo studio?

French artists Pierre Emm and Johan da Silveira have developed a prototype of a tattoo robot during an Autodesk-sponsored Pier 9 residency in San Francisco. There are several steps involved in the tattooing process when performed by a robot. First, a 3D scan of the targeted body part has to first be made. The tattoo […]

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How does replacing employees with ordering kiosks at Panera change its break even point?

During 2016, Panera Bread Company (PNRA) is building ordering kiosk centers in its cafes. These ordering kiosks will allow customers to browse nutritional content of its menu items and will allow for personalization of menu items.  Panera has stated that wait times will be shortened and order accuracy will be improved by using this new […]

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How much in sales does Boswell’s Beanery need to break even for its booth rental costs at a home and garden show?

Boswell’s Beanery is a locally-owned specialty food product company in Northeast Ohio that has been in existence for over thirty years. Its products include flavored coffees and teas, dips, dressings, sauces, and seasonings. The company attends a variety of craft and other shows throughout the year and sets up a booth at each show to […]

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What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?

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 […]

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

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 […]

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How does the change in selling price impact the break even point for Amazon’s Fire Phone?

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 […]

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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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