When a department or a product is unprofitable, decisions must be taken whether 2 shut-down that area or not.
The Quantifiable Cost or Benefits of closure.
- lost of contribution
- savings in specific FC
- penanlties n other costs resulting 4m closure:-redundancy, compensation 2 customers
- additional contribution of alternative use of resource.
- penalties n other costs
- additional contribution alternative
- reorganisation costs
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