Tag Archives: managerial accounting;

What is the impact on cash from Sony selling its old Tokyo headquarters?

In March 2014, Sony signed a deal to sell its old Tokyo headquarters and a nearby building for $156 million. This building served as Sony’s headquarters from 1990 to 2007 and is thought of as the birthplace of the company, where Sony founders worked on the Walkman and Trinitron TV. This building sale follows the […]

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Would R.S. Owens, the manufacturer of Oscar statues, use job costing or process costing?

The Academy Awards is an annual American awards ceremony honoring achievements in the film industry. Winners receive a statue officially named the “Academy Award of Merit.”  However, these statues are much better known by the nickname of “Oscars.” Each Oscar statue weighs 8.5 pounds and takes three to four weeks to manufacture.  The statues have […]

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How do the added costs to produce BK’s new lower-calorie fries affect the fry breakeven point?

Burger King has launched a new kind of French fries called “Satisfries.” These new fries are made with a batter that is less porous and absorbs less oil than Burger King’s regular fries, resulting in 20 per cent fewer calories in Satisfries than regular fries.  Satisfries contain 340 calories versus 410 calories in regular fries. Consumers […]

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What assumptions go into preparing a budget for a New York Fashion Week show?

In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New York Fashion Week were listed. These cost estimates are listed below: Rent $0 to $100,000 Hair and makeup: $0 to $100,000 Stylist: $5,000 to $20,000 Public relations: $10,000 to $20,000 Models: $0 to $200,000 […]

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How does Washington Township analyze its potential equipment purchases?

Washington Township in Franklin County, Pennsylvania, operates a Transfer Station and Recycle Center that individuals and businesses can use to recycle a variety of items, including electronics, bottles, and cardboard. At the township’s Transfer Station and Recycle Center, a baler is used to compress and bale certain recyclable items for transport.  Typically, balers might produce […]

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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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Why did Hawaiian Airlines make the decision to offer iPad Minis for in-flight rental?

In 2013, Hawaiian Airlines made the decision to add 1,500 iPad Minis to its older Boeing 767 widebody jets to make them available for passengers to rent during flights.  Prior to the iPad Minis, these aircraft had dated portable “digEplayers” for its passengers to rent.  Presumably, these dated devices have become less attractive to today’s […]

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