Question

In: Accounting

Suppose a company can replace the packing material it currently uses with a biodegradable packing material....

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?

Solutions

Expert Solution

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 :-

  1. 70% less carbon dioxide is discharged by the utilization of biodegradable materials like corn and sugarcane for pressing .
  2. Pressing produced using biodegradable substances will be changed into manure following 12 weeks of use .
  3. Lessening of carbon impression and less effect on condition will win with the utilization of biodegradable pressing .

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 :-

  1. They are strong for quite a while time frame .
  2. They can be made into various shapes .
  3. As these bio-degradable materials are sturdy , they can be utilized for an extensive stretch of time .
  4. The best model is cooking utensils , plastic convey sacks .

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