Tag Archives: mixed costs

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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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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How do costs of a fashion truck compare with the costs of a bricks-and-mortar store?

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 […]

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