The small toxic labs (STLs) located in homes, tent, or hotel rooms make an addictive drug M. The manufacturing of the same has resulted in various explosions, toxic fumes, and burns. These STLs are often destroyed by government entities. The various meth dealers are arrested, the addicts are treated, and services are provided to the affected families. The main ingredient of Meth is also used in medications for allergies and cold. A suit was filed against the company P that has a business of manufacturing medications for allergies and cold. To find: The ethical responsibility of company P in the above situation.

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Chapter 5, Problem 2BCP

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Case summary: The small toxic labs (STLs) located in homes, tent, or hotel rooms make an addictive drug M. The manufacturing of the same has resulted in various explosions, toxic fumes, and burns. These STLs are often destroyed by government entities. The various meth dealers are arrested, the addicts are treated, and services are provided to the affected families. The main ingredient of Meth is also used in medications for allergies and cold. A suit was filed against the company P that has a business of manufacturing medications for allergies and cold.

To find: The ethical responsibility of company P in the above situation.

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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…