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A grocery store wants to encourage its customers to bring their own shopping bags, thus saving the store money on purchasing plastic or paper bags
A grocery store wants to encourage its customers to bring
their own shopping bags, thus saving the store money on purchasing plastic or paper bags and saving the environment in the process. For an Earth Day promotion, the store gives away free canvas bags and engages in a substantial advertising campaign to highlight the initiative. Then, the store rewards customers who bring their own bags with a 5% discount on all future shopping trips. which of the followimg is not a way this initiative might be reflected in the grocery stores contribution margin income statement.
- it woudnt be, contribution margin income atatements do not chrrently support sustainablity accojnting
-stores fixed cost would increase to account for promo materials and fixed costs of providing free bags
-stores sale revenue would decrese to reflect discoutns given to customers who bring own bags
-stores variable cost would decrese to reflect reduced cksg of providing paoer or plastic bags
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