A Case Study on Cost Estimation and Profitability Analysis...

ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 1 2011 pp. 181–200 American Accounting Association DOI: 10.2308/iace.2011.26.1.181 A Case Study on Cost Estimation and Proï ¬ tability Analysis at Continental Airlines Francisco J. Romà ¡n ABSTRACT: This case exposes students to the application of regression analyses to be used as a tool pursuant to understanding cost behavior and forecasting future costs using publicly available data from Continental Airlines. Speciï ¬ cally, the case focuses on the harsh ï ¬ nancial situation faced by Continental as a result of the recent ï ¬ nancial crisis and the challenges it faces to remain proï ¬ table. It then highlights the importance of reducing and controlling costs as a viable strategy to restore†¦show more content†¦Continental’s internal forecasts indicated that a further decline in passenger volume should be anticipated throughout 2009, with a recovery in travel possibly occurring by the middle of 2010. To summarize, adverse economic conditions in the U.S., coupled with the rise in fuel costs, were dragging down Continental’s proï ¬ ts and relief was unlikely through the foreseeable future. THE DECISION TO REDUCE FLYING CAPACITY AND THE IMPACT ON OPERATING COSTS Given the situation described above, management needed to act swiftly to restore proï ¬ tability. Several strategic options were evaluated. Since the U.S. and much of the world was facing a severe recession, the prospect for growing revenues by either raising airfares or passenger volume seemed futile. Contrary to raising revenue, Continental’s managers believed that raising fares could potentially erode future revenues beyond the present level. Discounting fares did not seem a plausible solution either, because given the severity of the economic situation a fare cut could fall short in stimulating additional passenger demand and lead to lowering revenues. Thus, because management anticipated that revenues would remain ï ¬â€šat for most of the year, the only viable short-term solution to restoring proï ¬ ts was a substantial and swift reduction in operating costs. This could most effectively be accomplished in two ways. First, through a reduction in ï ¬â€šyingShow MoreRelatedA Case Study on Cost Estimation and Profitability Analysis at Continental Airlines8979 Words   |  36 PagesA Case Study on Cost Estimation and Profitability Analysis at Continental Airlines Francisco J. Romà ¡n Introduction In 2008, the senior management team at Continental Airlines, commanded by Lawrence Kellner, the Chairman and Chief Executive Officer, convened a special meeting to discuss the firm’s latest quarterly financial results. A bleak situation lay before them. 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The Illusion that Money Brings Happiness - 803 Words

Some would say we are slaves to our primal urges, shackled in our endless pursuit of gratification and shaping our very existence around them. We gravitate towards the things in life that bring us pleasure, and recoil from those that cause us pain. People always show a feeling of wanting everything their way, as to wanting something. Just like everything else there are always limits. In order to obtain these things that people believe will bring them happiness, many go over the line. Many believe that with money they can have anything they desire. Though it may be true to an extent, sometimes the desires eventually turn into greed and people lose some of the most valuable things life has to offer. Focusing on the illusion that money brings happiness may have an unexpected turn later down the road. For instance, when someone reflects on how money would change their sense of well-being, they would probably think about spending more time in leisurely pursuits such as traveling abroad. But in reality, they would have to spend a large amount of time working and less time engaged in experienced happiness. Robert H. Frank says in his book Luxury Fever: Money and Happiness in an Era of Excess: â€Å"Even among those who can easily afford today’s luxury offerings, there has been a price to pay. All of us- rich and poor alike, but especially the rich- are spending more time at the office and taking shorter vacations; we are spending less time with our families and friends; and we haveShow MoreRelatedF. Scott Fitzgerald s The Great Gatsby Essay1295 Words   |  6 PagesScott Fitzgerald’s famous novel, The Great Gatsby, accurately re-creates this time period yet criticizes the changes of societal attitudes and its values that occurred, making Fitzgerald the first â€Å"American writer to write seriously about money and the effects of money on character† (Bruccoli). The two main characters, Nick Carraway and Jay Gatsby, both made the decision to reside in New York in hopes of obtaining their own fortune in order to achieve the wealthy, comfortable lifestyle they always desiredRead MoreF. Scott Fitzgeralds The Great Gatsby Essay1459 Words   |  6 Pagest o obtain the affection go the beloved and deeply flawed Daisy. Regrettably, throughout his conquest for Daisy’s affection, Gatsby falsely presumes that through his accumulation of wealth he will be able to acquire his deeply embedded desires for happiness, which mainly revolve around his acquisition of Daisy Buchanan. Eventually, Gatsby’s wealth ultimately results in his cataclysmic demise, as it is unable to provide him Daisy’s unconditional and boundless love, social acceptance, and personal integrityRead MoreThe Great Gatsby By F. Scott Fitzgerald1588 Words   |  7 Pagesassociated with the idea of envy. 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However, one cannot experience suffering without also knowing its opposite of love, joy, and happiness. Buddhist terminology refers to these emotional states as dukkha and sukha. Importantly, however, these emotional conditions are impermanent and deeply re lated to one another. Dukkha comes from the fruitless but eternal human plight of grasping at an ephemeral sense of happiness. Too many live without acknowledging that their endeavors of maintaining a static feeling of bliss, or sukhaRead MoreThe American Dream In The Great Gatsby Analysis758 Words   |  4 Pagesillustrate the American Dream is the â€Å"Valley of Ashes†. This unpleasant land portrays the awful consequences of the America’s fascination with money. It imitate the social and moral disrepair that results from pursuing the American Dream. Also, as many women of earlier generations, Daisy represents the â€Å"American Dream† she recognizes that this doesnt bring her happiness. 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More Than Me (ROUGH DRAFT) free essay sample

I am a student, an athlete, a member of my community, a son, a nephew, a brother. I am Victor from Potomac, Maryland and I am more than just a teenage boy. I am an explorer and cultural analyst. My entire life I have been living one big cultural experience. I am from the green pastures and tin roof houses in my mother’s home town of San Juan, Dominican Republic. I am from the fluffy snowflakes of Chile falling on my warm cheeks and melting away before I can grasp their beautiful shape. I am from the sleepless city of Lima, Peru. I have seen everything from the Blue Ridge Mountains to the deserts of Joshua Tree. But this is only part of my story, I have sailed the seven seas, spent an evening in the Amazon, and the next morning in China. How does a teenage boy fit that much travel into a mere 16 years of existence? Did I truly spend one night in Nepal, and the next morning in China? Perhaps not, but in my mind I am Ferdinand Magellan, master of the seas and first man to circumn avigate the globe. We will write a custom essay sample on More Than Me (ROUGH DRAFT) or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page My fascination for different cultures and my own diverse background has lead me on an enterprise to study and learn as much as I can about the many different cultures that come together to build what we perceive as human nature. Whether it is in extrinsic foods, foreign films, language CD’s or foreign novels, I am constantly trying to enrich my knowledge of people. My story began early in middle school, when my interest in my own family’s history became aroused. The black and white pictures of people I had never met decorated our living room walls. These pictures were the gateway drug into my fascination for culture. I soon began taking French in school, and becoming very interested in social science classes.

The relationship between Capulet and Juliet Essay Example

The relationship between Capulet and Juliet Essay One of the main themes in the play Romeo and Juliet is that of the generation gap between the young and the old. The younger generation have new and innovative ways of doing things, whilst the older generation tend to stick with the traditions they have grown up with. The misunderstanding between the younger and older characters in the play causes many of the dilemmas that the characters face.At the beginning of the play Lord Capulet (also referred to as Capulet) seems an honourable and welcoming character, who is willing to keep the peace between the house of Montague and of his own. When confronted at the start of the play by his son Tybalt about Romeos gate-crashing of the Capulets house party he shows a warm and welcoming attitude towards him and says Verona brags of him to be a virtuous and well governed youth, this is a peculiar thing for a Capulet to say about a Montague as there is such a high level of hatred between the two families. Capulet cares tremendously about his daug hter Juliet and only wants what is best for her. As all of Capulets children have died and Juliet is the only child remaining he is mildly overprotective of her. For example when he is speaking to Paris about marrying Juliet he says And too soon marriedall my hopes but she.Throughout the play Juliet faces a variety of emotional challenges; this ensures a young and naà ¯Ã‚ ¿Ã‚ ½ve Juliet has to mature above her age in a short period of time. These obstacles include her marriage to Romeo and her relationship with her father Capulet. In Act 1 Scene 2 Capulet says to his daughter My child is yet a stranger in the world. This supports the idea that she is naà ¯Ã‚ ¿Ã‚ ½ve and immature in the first half of the play. At the start of the play her language is normal and the fact she does not have much antithesis. As the play progresses her language intensifies and we see a humble, outgoing and responsible character that seems very different person to the Juliet earlier on in the play.Anothe r key feature of the play is the Ancient grudge. This ultimately leads to the death of the star crossed lovers. The younger generation do not understand the danger the hatred between the two houses can put them in. Romeo and Juliet could die if someone as much saw them together in the play. Romeo and Juliet overcome this dilemma as they are willing to risk their lives for the love they have for each other. Shakespeares play contains a great deal of dramatic irony, this gives the play a feeling of suspense as the two characters could get caught at any time. Just after the first fight scene in the play Lady Capulet says to Capulet A crutch, a crutch. Lady Capulet is implying that Capulet is too old to fight in a younger generations battle. This is yet another example of age vs youth.Many people would say that another major role in the outcome of the play is the urgency for Romeo and Juliet. In the Jacobean times that average life expectancy would be around the age of 35 and therefore you can see why Capulet is eager to marry off Juliet since she is at an age where she can bear children. We know this as Lady Capulet says Shes not fourteen. Although Lady Capulet is very strict and unforgiving throughout the play I believe that she cares immensely for her daughter and only wants a successful and happy marriage for her. When she mistakes Juliets tears as grief for Tybalts death at hands of Romeo she promises vengeance for his death by poisoning Romeo in Mantua We will have vengeance for it, fear thou not: Then weep no more. Ill send one to Mantua.Act 3 Scene 5 is where Capulets relationship with Juliet is broadly illustrated. At the start of the scene Lady Capulet enters her daughters room and puts forward the proposition of a marriage between her and Paris. Marry my child early next Thursday morn the gallant.county Parisshall happily make thee there a joyful bride. Juliet dismisses this offer without a thought of how much this marriage means to the Capulet househol d. Capulet then enters the room and is greeted by Juliets refusal to marry Paris.Lord Capulet then unleashes a flurry of hurtful outbursts which include If you do not go to Church on Thursdayhang, beg, starve, die in the streets for by my soul I will never acknowledge thee. This is a very hurtful and malicious to make his only remaining child and daughter Juliet is only trying to tell her father that she is not in love with Paris and wont marry him. We can make the assumption that Capulet thinks that Juliet is being ungrateful and rebellious by dismissing her fathers offer for her to marry Paris.Juliet also shows that she is an understanding and honourable character at various stages throughout the play both to her family and to people such as Romeo and the Nurse. One of these examples is in Act 4 Scene 1 where Juliet remains loyal and honourable to Romeo despite her conversation with Friar Lawrence about the arranged marriage to Paris and that of her committing suicide when she say s And I will.wife to my sweet love where she is talking about faking her own death just so she can be Romeos unstained wife.Juliets character goes through several life changing scenarios in one period of time that you would expect to encounter in a lifetime. This leads me to my conclusion where I can say that Juliet as a character shows great courage, maturity and self-awareness throughout the play. This statement could not be presented in a better example than that of Juliet faking her own death just so she can spend the rest of her life with her true love Romeo. Out of the characters among the play Romeo and Juliet, Juliet stands out as the true survivor although she died as she has overcome so many impediments and yet still matured and matured until she reached the point where she put her love before her well being and sacrificed her life, friends and family to be with her one true love Romeo.