Question
The proposal to reduce variable costs to 55% does seem profitable as after this change the profits shall increase to $360,000 from loss of $140,000.
The proposal to reduce variable costs to 55% does seem profitable as after this change the profits shall increase to $360,000 from loss of $140,000. But this change comes at the expense of creating environmental problems as now the plastic would bot be safely disposed. The environmental costs associated with the change should also be considered into the analysis and the overall profit should be calculated.
The final decision whether to go ahead with the change should then only be considered after careful consideration of the environmental costs in the analysis
Can someone put the post into there own word please?
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