A Cadbury Creme Egg is an egg-shaped chocolate candy that weighs about 35 grams, or a little more than 1.2 ounces. It is filled with a white fondant and a smaller amount of yellow fondant, meant to mimic an actual egg. (Fondant is a type of sugar syrup.) In the U.S., Cadbury Creme Eggs are […]
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Would the owner of the PNC Arena where the Carolina Hurricanes play hockey be better off financially if the arena were to shut down?
February 16, 2016 
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The Gale Force Holdings Limited Partnership owns both the Carolina Hurricanes (a professional hockey team) and the PNC Arena where the Hurricanes play. A recent news article stated that the Carolina Hurricanes owner lost $1.3 million in operating the PNC Arena for the fiscal year ending June 2015 (Forbes, Mike Ozanian, “Carolina Hurricanes Owner Lost […]
Continue readingAt Lululemon, how can sales be up while gross margin is down?
January 28, 2016 0 Comments
Founded in 1988, Lululemon Athletica Inc. (LULU) is an athletic apparel company headquartered in Canada. Lululemon has helped to popularize the ubiquitous yoga pants in the U.S. While it has experienced some sales declines due to a recall of yoga pants in 2013 for being too sheer, Lululemon has revamped its product line to update […]
Continue readingWhat are the product and period costs associated with a Broadway theater bar?
January 26, 2016 0 Comments
Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well. One such hospitality […]
Continue readingHow would the breakeven sales of Cafe Edison, a New York City diner, have been affected by a rent increase?
January 12, 2016 2 Comments
Recently, several traditional New York City diners have closed, including Cafe Edison, La Parisienne, and Three Star. Real estate costs in New York City continue to increase, thus fueling rent hikes for small businesses like the Cafe Edison. The diner closures have been attributed to both rent hikes and a decline in the number of […]
Continue readingWhat costs would be relevant when Amazon considers whether to operate its own cargo freight service?
January 7, 2016 0 Comments
Since its inception, Amazon has relied on third-party shippers, such as UPS and FedEx. In 2013, Amazon experienced a wave of last-minute orders and bad weather left UPS and other shippers unable to deliver Amazon’s packages. Amazon issued apologies and $20 gift cards to customers, but its reputation suffered from the unhappy customers who were […]
Continue readingWhat type of responsibility center would a Kohl’s Café within the department store be considered?
November 24, 2015 0 Comments
In an effort to increase the number of shoppers coming into its stores and the length of time those shoppers stay, Kohl’s (KSS) is adding a small café (Kohl’s Café) to each of two of its department stores in the Milwaukee, Wisconsin area. Each café will sell Caribou Coffee items including lattes, cappuccinos, and other […]
Continue readingWhat costs are relevant when pricing a cargo ship cruise?
November 19, 2015 0 Comments
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 […]
Continue readingNow that Dyson owns a battery firm, how will the transfer price for batteries used in its vacuums be determined?
October 22, 2015 0 Comments
Dyson, the vacuum cleaner manufacturer, recently made a large investment in a battery technology firm, Sakti3. Sakti3 is a Michigan-based startup that is working on a solid-state battery. These solid-state batteries would last approximately twice as long as current lithium-ion batteries. Solid-state batteries also do not use liquid electrolyte, the lithium-ion substance that can cause […]
Continue readingWould job order costing or process costing be used by the Smarties Candy Company?
October 15, 2015 3 Comments
Smarties come in six flavors: white (orange crème), yellow (pineapple), pink (cherry), green (strawberry), purple (grape), and orange (orange). Smarties are gluten free and vegan and have 25 calories per roll of 15 candies. The main ingredient in Smarties is dextrose, a form of sugar. The Smarties Candy Company, founded in 1949, makes its Smarties […]
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