Your assignment this week is to give the Board of Directors a 3 pag...

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Your assignment this week is to give the Board of Directors a 3 page Word document/paper and accompanying visual (PowerPoint). The objective is to discuss marginal analysis as it relates to the company you have chosen and how it can be incorporated into day to day operations in order to increase productivity and profitability. Include a graphic that demonstrates the marginal analysis concept. Utilize APA citations and formatting.

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The cost structure of every organization comprises of two components – fixed costs and variable costs. However, decision making is focused on incremental costs of the business and incremental benefits which necessitates the application of the concept of marginal analysis. Marginal analysis is focused on identifying the extra costs associated with the production of an extra unit and the same is compared with the additional revenues to make decisions about production. Wal-Mart is a retailer and has made a significant investment in infrastructure. As such, it can use the concepts of marginal analysis to set prices and determine the product lines which it should carry or remove.
Application of marginal analysis to Wal-Mart
Wal-Mart is a retailer and provides services to consumers. However, marginal analysis can play a very important role in the operational and...

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