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

How do costs of a fashion truck compare with the costs of a bricks-and-mortar store?. Original blog posting (February 27, 2014 ). Passionista Fashion Truck. Converted pretzel truck to fashion boutique in Delaware

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

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  1. How do costs of a fashion truck compare with the costs of a bricks-and-mortar store? Original blog posting (February 27, 2014)

  2. Passionista Fashion Truck • Converted pretzel truck to fashion boutique in Delaware • Sells accessories, nail polish, totes, clothing, and other fashion-related items • Drives city to city

  3. Question 1 Over the course of a year, what costs do you think would be incurred in owning and operating a fashion truck?

  4. Question 2 Of the costs you listed in your response to Question 1, which costs would be fixed costs? Which would be variable? Which would be mixed?

  5. Question 3 Now imagine a bricks-and-mortar fashion store.  Over the course of a year, what costs do you think would be incurred in owning and operating a bricks-and-mortar fashion store?

  6. Question 4 Of the costs you listed in your response to Question 3, which costs would be fixed costs? Which would be variable? Which would be mixed?

  7. Question 5 Which structure, fashion truck or fashion store, has more fixed costs versus variable costs?  Which model would have higher operating leverage?

  8. Question Recap • Over the course of a year, what costs do you think would be incurred in owning and operating a fashion truck? • Of the costs you listed in your response to Question 1, which costs would be fixed costs? Which would be variable? Which would be mixed? • Now imagine a bricks-and-mortar fashion store.  Over the course of a year, what costs do you think would be incurred in owning and operating a bricks-and-mortar fashion store? • Of the costs you listed in your response to Question 3, which costs would be fixed costs? Which would be variable? Which would be mixed? • Which structure, fashion truck or fashion store, has more fixed costs versus variable costs?  Which model would have higher operating leverage?

  9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu

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