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; […]
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Tag Archives: breakeven point
How would a nail-painting robot impact a hotel spa’s cost behavior and operating leverage?
November 17, 2021 
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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 readingDo cash dividends paid affect a company’s breakeven point?
August 1, 2017 0 Comments
A recent blog posting for the Wall Street Journal had the headline “Big Oil Reaches for a Modest Goal: Breaking Even – Energy Journal[1].” The article stated that the “two-year slump in oil prices led…[big oil companies]…to rein in spending and lay off workers but the firms still didn’t make enough money in 2016 to […]
Continue readingHow would the breakeven sales of Cafe Edison, a New York City diner, have been affected by a rent increase?
January 12, 2016 2 Comments
Recently, several traditional New York City diners have closed, including Cafe Edison, La Parisienne, and Three Star. Real estate costs in New York City continue to increase, thus fueling rent hikes for small businesses like the Cafe Edison. The diner closures have been attributed to both rent hikes and a decline in the number of […]
Continue readingWhat happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
March 13, 2015 0 Comments
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 […]
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 […]
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 […]
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Accounting in the Headlines 