Tag Archives: breakeven

How does shifting the sales mix at Ford Motor Company to more F-150 trucks affect Ford’s break even sales volume?

Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States as compared to the prior month. Sales of Ford’s F-series trucks and the Explorer, Expedition, and Navigator SUV models drove the sales growth. According to a Bloomberg article (link) earlier this year, the F-150 Series product line is Ford’s most […]

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

Stellar Pizza has a pizza-making robotic machine that was built by three former SpaceX engineers. More than 23 former SpaceX employees work at Stellar Pizza. The pizza-making robot can produce a pizza every 45 seconds. A pizza can be customized, baked, and topped in less than five minutes by the robotic machine. Stellar Pizza will […]

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How would a nail-painting robot impact a hotel spa’s cost behavior and operating leverage?

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 […]

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What types of costs are associated with a Stance™ sock vending machine located in an airport?

At Cleveland Hopkins International Airport in northeastern Ohio, a vending machine that dispenses socks was recently installed. Located in the C concourse, the Stance sock vending machine offers a variety of what Stance refers to as “uncommon” socks. The designs on the socks in the Cleveland airport vending machine include Cleveland Browns, Cleveland Indians, patriotic […]

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Do cash dividends paid affect a company’s breakeven point?

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 […]

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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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How would the breakeven sales of Cafe Edison, a New York City diner, have been affected by a rent increase?

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 […]

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How will the 3.9% increase in FedEx Freight shipping rates impact the breakeven point for an Etsy jewelry artist?

FedEx Corp announced that it would be raising its shipping rates by an average of 3.9% on March 31, 2014.  The rate change applies to FedEx Freight shipments within and between the United States, Canada, and Mexico. The FedEx Freight segment is a provider of less-than-truckload (LTL) freight services, which is the shipping of relatively […]

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How will installing tablets at all tables affect Applebee’s breakeven point?

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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