Tag Archives: cvp

New data analytics case for introductory managerial accounting available – KAT Insurance!

In addition to the data analytics case we posted last week for introductory financial accounting, we have also developed a case, using the same KAT Insurance Company data set, for introductory managerial accounting. The three of us who teach introductory accounting (Wendy Tietz, Jennifer Cainas, and Tracie Miller-Nobles) developed a KAT Insurance case to introduce […]

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How will Walmart’s use of robots change its break even point?

Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other […]

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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 […]

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

Zume Pizza uses a combination of robots, artificial intelligence (AI), and GPS in its food trucks to deliver pizzas to customers’ houses just as the pizza is finished baking. Pizzas are actually prepared and baked in the Zume pizza truck by an employee assisted by robots.  Zume Pizza started operations in April 2016 and is currently […]

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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 many snow cones need to be sold for a Snowie™ snow cone cart to break even?

Snowie™ is a brand of flavored shaved ice that is sold in snow cones at a variety of events and locations across the United States.  Recently, a Snowie™ cart was spotted at the Kent Heritage Festival this summer. During this festival, street vendors offer a variety of foods and drinks. At the Snowie™ cart, festival […]

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How does replacing employees with ordering kiosks at Panera change its break even point?

During 2016, Panera Bread Company (PNRA) is building ordering kiosk centers in its cafes. These ordering kiosks will allow customers to browse nutritional content of its menu items and will allow for personalization of menu items.  Panera has stated that wait times will be shortened and order accuracy will be improved by using this new […]

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How does shifting the sales mix from Budweiser macrobrew beer to Elysian and other craft beers affect Anheuser-Busch’s break even sales volume?

Overall, there is flat demand in the beer industry.  Anheuser-Busch InBev (NYSE: BUD), based in Leuven, Belgium, is pursuing a “premiumization” strategy in the alcohol market to more aggressively market higher-priced brands.  It is working to expand its sales of regional and national craft brands, including Shock Top and Goose Island.  It is also acquiring […]

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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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What impact do lower fuel costs and other changes have on American Airline’s break even point?

American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters.  United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]

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