Tag Archives: contribution margin

Which iPhone model is the most profitable for Apple?

In late September 2017, Apple Inc. (NYSE: AAPL) announced that it would be releasing three new models of its iPhone in the fourth quarter of 2017: the iPhone X, the iPhone 8 Plus, and the iPhone 8. In addition, it would continue to sell some of the older models. To follow is a table containing […]

Continue reading

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 […]

Continue reading

How does outfitting AMC movie theaters with recliners affect the company’s break even point and operating leverage?

  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 reading

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 […]

Continue reading