On July 11, 2024 at 13:47, BizarroTerl said...
What escapes me is - If they were making money on Logitech why stop? Who cares what another division was doing?
If you have 3 businesses all making money, would you close one just because it wasn't making as much as the others?
I don't know if it was making money or not but to answer your question. Depending on the scenario the answer to your question the answer is yes.
let me put it this way
plant A makes 1k As an hour material and salaries 9k$ sold for 10K$
plant B makes 1k Bs an hour material and salaries 1k& also sold for 10k$
if I have the cash why wouldn't I retool plant A to make Bs instread of As if I know I can easily sell 2x as many Bs? I will still have 20k$ in revenue but instead of 10K$ in profit I I will now be at 18k$ and instead of having 10k$ tied up in costs I wiill have 2k$