Premium Essay

Cango Marginal Analysis

In:

Submitted By Redsfanjim
Words 434
Pages 2
Marginal Analysis CanGo wants to branch out and focus sales on other products other than books. They are taking on a lot of financial responsibilities that may not be worthwhile for the company. CanGo wants to make the online gaming venture successful and wants to venture into different types of online sales.
Recommendation:
#1. CanGo is in need of a marginal analysis. A marginal analysis would include economic view of how the company would spend its dollar. The analysis would also be able to show the company whether the money is being spent necessarily. It will also let CanGo know whether they are able to take on new business ventures. The marginal analysis will assist CanGo with analytical decision making.
#2. By doing a marginal analysis this will help CanGo decide whether employee shifting would be feasible or whether they should hire new staff. Even though the company would not be able to determine the exact outcome of the decision, the analysis will give them a rough idea of what to expect.

Cost Benefit Analysis CanGo has not currently had a cost benefit analysis done on the company. With a cost benefit analysis, it gives the company an analysis of a business decision that they are proposing. This will give them an idea on whether the company is financially stable to take on a new project or venture. The cost benefit analysis would include all costs associated with the new venture including warehousing fees and price that the product will be sold for. This is done to give the company insight on their new project.
Recommendation:
#1. A cost benefit analysis should have been done before taking on the online gaming venture. CanGo will now need to determine how they will make a profit on the gaming. The cost of providing the online gaming service would $0.11- $0.12 depending on how many units they are selling. CanGo wants to stay competitive in the

Similar Documents