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The proposal to reduce variable costs to 55% does seem profitable as after this change the...

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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The given situation is a case of ethical dilemma. If the variable costs are reduced by 55%, it will result into a better profitability for the business. The lower amount of variable costs will increase the profits of business to an amount of $360,000 from a loss of $140,000. It seems to be a very favourable situation if only the operational and financial costs and profitability are considered On the other hand, the reduction in variable costs will cause environmental problems because much of these costs are associated with disposal of plastics. If the plastic wastes are not safely disposed-off, tw result in environmental pollution and degradation. Hence, the costs associated with environmental problems should also be considered for analysing the overall profitability of the business The decision as to whether reduce the variable costs or not should be arrived at only after taking into consideration the environmental costs related to it and the damages caused to environment as a result of this decision.

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