Read and answer/draft the following numerical analysis as noted below:
Based on the information in the case, prepare an analysis of Wal-Mart’s costs relative to a more typical discount retailer as of 1984.
Why does Wal-Mart have superior profitability?
• Specifically, make a table comparing Wal-Mart’s cost structure with the industry average (as reflected by the data in Exhibit 3) and list your assumptions.
• Explain clearly and succinctly the sources of Wal-Mart’s cost advantage.
