Tag Archives: cost behavior

Does each Subway $5 Footlong cost the franchisee more than $5?

Subway, the fast food restaurant franchise, recently announced it is bringing back the “$5 Footlong” promotion. Hundreds of Subway franchise owners are protesting the promotion, saying that they cannot afford to sell the footlong sub sandwiches for $5. Assume that the costs related to a Subway footlong and a Subway franchisee include the following: Cost […]

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7 Excel projects for your managerial accounting course

Welcome to spring semester! I thought I would repost this information as you are getting ready to kick off the new semester. If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with […]

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Karen Braun’s 7 Excel projects for managerial accounting

If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with step-by-step student instructions and instructor solutions. The topics include: Job costing Cost behavior CVP analysis Process costing Budgeting Flexible budgeting Division evaluation […]

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What costs are relevant when pricing a cargo ship cruise?

Challenging economic conditions in several countries have pushed freight ship companies to look for additional sources of revenues in addition to the revenue generated by hauling freight across the ocean.  In recent years, one additional source of revenue for these freight companies has been to take on cruise passengers in addition to regular cargo. Generally […]

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What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?

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 […]

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How would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?

Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board.  It may be operated via remote control, […]

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How does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?

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 […]

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How does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?

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 […]

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Are the costs of owning a car fixed, variable, or mixed?

According to a recent news article in the Wall Street Journal (“Mercedes or Ford, It Costs a Lot More Than You Think,” Wall Street Journal, Sunday Journal, March 15, 2014), the average consumer spends more than $760 a month on his/her vehicle and related expenses.          Purchase price of the car          Finance charges on […]

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How did State Street Corp. achieve cost savings from its co-working building design in Boston?

“Co-working” is a term to describe a work environment where coworkers share the same office but not necessarily the same boss. Co-working centers feature large, central open spaces with couches, coffee tables, and casual furniture.  Some private, traditional offices typically are available for occasional use. The spaces are designed to foster socializing and exchanging ideas […]

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