What happens to the breakeven point when Sports
Illustrated lays off all six staff photographers and uses
freelancers instead?
Sports
Illustrated announced in late January 2015 that it would be
laying off all six of its staff photographers. Instead, it will be
using freelance photographers around the world. Sports
Illustrated is one of 90 magazines owned by Time Inc. (TIME).
Published 56 times a year, Sports Illustrated is read by
over 23 million people each week.
Questions
- What type of cost would staff photographers be for Sports
Illustrated (fixed, variable, or mixed)?
- What type of cost would the freelance photographers be for
Sports Illustrated?
- What is likely to happen to the breakeven point for Sports
Illustrated due to the switch to using freelance
photographers?
- What are some disadvantages to Sports Illustrated’s
decision to outsource its photography?
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