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How Wal-Mart can benefit from contribution margin analysis


  • Post Date 2018-11-07T13:18:16+00:00
  • Post Category Essays

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How Wal-Mart can benefit from contribution margin analysis

How Wal-Mart can benefit from contribution margin analysis

In this module you are going to have your final application to Walmart. Identify a decision that has recently been made or will be made in the near future in your organization. Identify two relevant and two non-relevant costs in this decision. LENGTH: 1-2 pages typed and double spaced The following items will be assessed in particular: The name and nature of the organization The activity and time period you used The inputs you used Your results Any implications from your results
Running Head: Contribution MarginWal-Mart: Contribution MarginNameCourseLecturerUniversityDate How Wal-Mart can benefit from contribution margin analysisWal-Mart is an American public corporation that leads in retail distribution and has a wide range of chains that are spread within America and in other countries. It has been known for its low pricing of goods. “In 2010 it was the world`s largest public corporation by revenue”. It was known as Wal-Mart Inc. stores for a long time until in 2008 where it changed it name to the current one. Contribution margin analysis is a technique used by companies to decide what new product(s) to add to their products or which product needs to be dropped out of the market by taking into consideration additional revenues, additional costs, effects the new product will have on the existing ones and competitors reaction. The manager will always wonder what will happen to his profits when he makes a decision of introducing new products (Marshall et al 2003). Wal-Mart recently expressed its interest in selling the iPad. An iPad is the first of its kind a tablet computer developed by Apple Inc. It is in between a smart phone and a laptop. There are many people who are very eager for the iPad to hit the...

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