Estimating marginal costs for increased capacity in a local area network

Presents a methodology for calculating the marginal cost of adding additional workstations to a local area network (LAN). A base LAN is presented, and the four areas of hardware, software, training, and support, where additional capacity is often added, are considered. Each of these areas has different technical concerns and within an area, the marginal cost depends on the available capacity of its network resources and the additional capacity demanded. A discussion of the marginal aspects of these changes is given, and then a marginal cost estimation methodology, complete with a straightforward estimation sheet, is presented. These notions are applied to four different scenarios, to demonstrate how the cost of adding capacity changes as the network changes.<
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