Assuming that ATCHULO Company Ltd is committed to the current design, how would you improve it?

Business

1 answer:

Alisiya [41]2 years ago

6 0

Answer:

Atchulo company should focus on its income centers rather than the whole organization. The company has limited itself to only domestic shipments. It has not considered the international shipment where profit margin can be high and company can benefit from expanding its operations. Also all the cost related to the travelling of shipment to and from the hub is charged to the hub and terminals does not bears the cost.

Explanation:

The revenue for the different terminals and hub is divided so the cost should also be allocated to the respective activities. If the hub is set as cost bearing center then there will no profit to the hub and terminals cost will be reduced and they will enjoy high profit.

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