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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Tag Archives: cost behavior
How would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 
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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, […]
Continue readingHow does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?
November 12, 2014 0 Comments
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 […]
Continue readingHow does automated technology in fast food restaurants change the cost structure, break even, and degree of operating leverage?
June 18, 2014 0 Comments
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 […]
Continue readingAre the costs of owning a car fixed, variable, or mixed?
May 29, 2014 0 Comments
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 […]
Continue readingHow did State Street Corp. achieve cost savings from its co-working building design in Boston?
April 10, 2014 0 Comments
“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 […]
Continue readingHow do costs of a fashion truck compare with the costs of a bricks-and-mortar store?
February 27, 2014 0 Comments
Fashion trucks are starting to pop up across the country. These fashion trucks are fashion boutiques on wheels. The owners of the fashion trucks drive them from locale to locale, seeking to bring clothing and accessories to urban dwellers who value the convenience of a mobile store front. Emily Duran operates the light pink Passionista […]
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 