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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Tag Archives: break even
How does the change in selling price impact the break even point for Amazon’s Fire Phone?
November 18, 2014 
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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 […]
Continue readingHow does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?
November 12, 2014 0 Comments
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 […]
Continue readingHow does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?
July 18, 2014 0 Comments
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 […]
Continue readingHow does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?
June 18, 2014 0 Comments
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 […]
Continue readingWhat is break even for a food vendor at The Ohio State Fair?
November 19, 2013 0 Comments
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. […]
Continue readingHow do the added costs to produce BK’s new lower-calorie fries affect the fry breakeven point?
November 4, 2013 0 Comments
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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Accounting in the Headlines 