{"id":621,"date":"2015-10-20T21:59:33","date_gmt":"2015-10-20T21:59:33","guid":{"rendered":"https:\/\/courses.candelalearning.com\/managacct2x10xmaster\/?post_type=chapter&p=621"},"modified":"2016-01-25T16:06:12","modified_gmt":"2016-01-25T16:06:12","slug":"accounting-in-the-headlines-7","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-managacct\/chapter\/accounting-in-the-headlines-7\/","title":{"raw":"5.9 Accounting in the Headlines: Breakeven","rendered":"5.9 Accounting in the Headlines: Breakeven"},"content":{"raw":"

What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers\u00a0instead?<\/h1>\r\n

\"sports-illustrated\"<\/a>Sports Illustrated<\/em> announced in late January 2015 that it would be laying off all six of its staff photographers.\u00a0 Instead, it will be using freelance photographers around the world.\u00a0 Sports Illustrated<\/em> is one of 90 magazines owned by Time Inc. (TIME<\/a>). \u00a0Published 56 times a year, Sports Illustrated<\/em> is read by over 23 million people each week.<\/p>\r\n\r\n

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  1. What type of cost would staff photographers be for Sports Illustrated <\/em>(fixed, variable, or mixed)?<\/li>\r\n\t
  2. What type of cost would the freelance photographers be for Sports Illustrated<\/em>?<\/li>\r\n\t
  3. What is likely to happen to the breakeven point for Sports Illustrated<\/em> due to the switch to using freelance photographers?<\/li>\r\n\t
  4. What are some disadvantages to Sports Illustrated<\/em>\u2019s decision to outsource its photography?<\/li>\r\n<\/ol>\r\n<\/div>","rendered":"

    What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers\u00a0instead?<\/h1>\n

    \"sports-illustrated\"<\/a>Sports Illustrated<\/em> announced in late January 2015 that it would be laying off all six of its staff photographers.\u00a0 Instead, it will be using freelance photographers around the world.\u00a0 Sports Illustrated<\/em> is one of 90 magazines owned by Time Inc. (TIME<\/a>). \u00a0Published 56 times a year, Sports Illustrated<\/em> is read by over 23 million people each week.<\/p>\n

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    Questions<\/strong><\/p>\n

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    1. What type of cost would staff photographers be for Sports Illustrated <\/em>(fixed, variable, or mixed)?<\/li>\n
    2. What type of cost would the freelance photographers be for Sports Illustrated<\/em>?<\/li>\n
    3. What is likely to happen to the breakeven point for Sports Illustrated<\/em> due to the switch to using freelance photographers?<\/li>\n
    4. What are some disadvantages to Sports Illustrated<\/em>\u2019s decision to outsource its photography?<\/li>\n<\/ol>\n<\/div>\n\n\t\t\t
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      Candela Citations<\/h3>\n\t\t\t\t\t
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