How will Walmart's use of robots change its break even point?

Walmart robots Robots do the repetitive tasks, freeing up employee time. Cleaning robots save two hours per day of employee time Scanning robots track store inventory and are three times as fast as employees and twice as accurate Conveyor belt robots sort products from trucks as they are unloaded and cut the number of employees needed in half

Question 1 Do you think that the costs of robots are mostly variable or fixed? Explain.

Question 2 Would the cost of full-time hourly employees behave mainly as a variable cost or a fixed cost? Does your answer change if you consider part-time hourly employees rather than full-time employees? Explain.

Question 3 How would Walmart’s break even point change by using robots rather than hourly employees?

Question 4 What are some of the advantages to Walmart of using employees rather than robots?

Question 5 What are some of the advantages to Walmart of using robots rather than employees?

Question Recap Do you think that the costs of robots are mostly variable or fixed? Explain. Would the cost of full-time hourly employees behave mainly as a variable cost or a fixed cost? Does your answer change if you consider part-time hourly employees rather than full- time employees? Explain. How would Walmart’s break even point change by using robots rather than hourly employees? What are some of the advantages to Walmart of using employees rather than robots? What are some of the advantages to Walmart of using robots rather than employees?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Dr. Wendy Tietz at wtietz@kent.edu