Question: Suppose a company can replace the packing material it currently uses with biodegradable packing material. The company believes this move to biodegradable packing materials will

Suppose a company can replace the packing material it currently uses with 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 biodegradable packing materials? What are the arguments for the company to not use biodegradable materials?

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