Tag Archives: contribution margin ratio

NEW! Data analytics project: Contribution margin analysis and segment margins for introductory managerial accounting

This blog post contains a data analytics project that is suitable for introductory managerial accounting. The student uses Excel to analyze a data set that contains more than 48,000 records. The data analytics project can be assigned in the course once the concepts of contribution margin, contribution margin ratio, and segment margins reviewed. Overview of […]

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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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How many aircraft must be in service to break even at Virgin America?

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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