In: Accounting
Suppose a company can replace the packing material it currently uses with a biodegradable packing material. The company believes this move to biodegradable packing materials will be well-received by the general public. However, the biodegradable packing materials are more expensive than the current packing materials and the contribution margin ratios of the related products will drop. What are the arguments for the company to use the biodegradable packing materials? What are the arguments for the company to not use the biodegradable materials?
Answer :-
Biodegradable materials :-
A material that falls into place without any issues by breaking natural segments and motivates presented to warmth and microorganisms that happen normally is known as a biodegradable material .
Employments of biodegradable materials :-
Non - Biodegradable materials :-
The items that discharge noxious poisons into nature that hurt the earth and set aside a long opportunity to corrupt are called as non-Biodegradable materials .
Employments of non - biodegradable materials :-