Unisco Products manufactures a line of children's toys that are painted in bright, colorful 2, 3 tones. One of the most popular toy colors is yellow oxide. The company has become aware, however, that the yellow oxide paint it is using is possibly toxic. Accordingly, the company has sought a replacement paint of the same color that is guaranteed safe. The only feasible replacement iht as found will cost three times as much as the paint currently being used. Switching to this paint would require a substantial increase in the toy's sales price to cover the added cost.

Rosemary Terry, marketing manager, insists that sales of this toy will decline significantly if the price is increased to cover the additional paint cost.

a. Does paint add value to the product? Why or why not?

b. How does managerial accounting create an ethical concern for managers at Unisco? Explain your answer.